IMF Downgrades Global Growth

Published by Filipe R. Costa on Tue, 09/10/2012 - 10:48
imf

Daily Market Commentary for October 9: Equities are looking for direction as QE3 boost them higher but news coming to the market are negative. IMF downgraded global growth yesterday and is weighing negatively on today’s European markets.

The FTSE closed down 0.5%, the S&P down 0.35% and the Euro lost ground to the dollar in a light session as the Columbus Day in the US sees debt markets closed.

The Finance Ministers are currently meeting at Luxembourg in order to discuss the crisis once again. Speculation on a Spanish bailout is still on the table but it is very unlikely that something comes from the meeting in that direction. Germany does not want a bailout for Spain for now and it won’t happen. They may try to pave the way for it in the future but at this point the risks are too high. While this uncertainty stays on the table and global growth concerns mount, the Euro can’t break above 1.30 with strength, but that is good news for bailed out countries, meaning they can continue their export prospects without being hit again with a stronger than anticipated Euro.

Angela Merkel is currently flying to Greece trying to show the world Greece and Germany are still on the same side but her visit is very unwelcome by Greek people that will show their unpleasantness in the streets.

Name Last price Close Price % 5-Day % YTD %
DAX (Xetra) 08/10/2012 7291.21 -1.44 -0.48 23.61
Nasdaq 100 Index 08/10/2012 2786.92 -0.89 -0.26 22.35
S&P 500 08/10/2012 1455.88 -0.35 0.79 15.77
Gold (LBM) $ 08/10/2012 177510 -0.29 -0.25 13.29
Dow Jones Industrial Average 08/10/2012 13583.7 -0.19 0.51 11.18
CAC 40 08/10/2012 3406.53 -1.46 -0.83 7.81
FTSE 100 08/10/2012 5841.74 -0.5 0.37 4.84
Nikkei 225 08/10/2012 8863.25   0.76 4.83
GBP/USD - US $ per £ 08/10/2012 1.6032 -0.64 -0.63 3.23
Crude oil (Brent) Composite 08/10/2012 11079 -0.01 -0.34 3.15
FTSE MIB 08/10/2012 15562 -1.98 0.25 3.13
EUR/USD - US$ per Euro 08/10/2012 1.2975 -0.48 0.67 0.16
EUR/GBP - £ per Euro 08/10/2012 0.8093 0.17 1.3 -2.87
IBEX 35 08/10/2012 7891 -0.8 1.37 -7.88
Crude oil (Light Sweet) Composite 08/10/2012 8995 0.06 -2.61 -9.14