Currently viewing Global edition

Markets down after gloomy IMF outlook

Market futures are pointing lower around the world as COVID-19 concerns grow and the International Monetary Fund forecast a deeper recession and slower recovery than previously expected.
Markets down after gloomy IMF outlook Markets down after gloomy IMF outlook Markets down after gloomy IMF outlook Markets down after gloomy IMF outlook Markets down after gloomy IMF outlook

The IMF has forecast a bigger hit to global growth than previously anticipated

Staff reporter

The IMF said the pandemic had a more negative impact on activity in the first half of 2020 than anticipated.

It's projected global growth at -4.9% for this year, and -8% in advanced economies, both 1.9 percentage points below the forecasts in its April World Economic Outlook.

It also expected a cumulative loss to the global economy from the pandemic crisis of more than US$12 trillion over 2020 and 2021.

The gold price neared $1,780 an ounce on the spot market earlier but had eased to about $1,763/oz at the time of writing.

The FTSE 100 closed 3.1% lower yesterday and the S&P 500 fell 2.59%.

Base metals bar lead closed lower in London.

Chinese markets are closed today and Friday for the Dragon Boat Festival.

Among the mining majors, Freeport-McMoran lost 4.6% in New York, Rio Tinto fell 2.3% in London, Barrick Gold gained 0.69% in Toronto and BHP was down 2% in morning Australian trade.