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SINGAPORE – European and Asian markets are mixed after the International Monetary Fund reduced its outlook for the global economy, citing the impact of rising interest rates and trade tensions.
SCORE GUARD: The German DAX lost 11% to 11,930.66 points, while the CAC 40 in France added 0.1% to 5,306.00 points on Tuesday. The British FTSE 100 was 0.1% lower at 7,235.58. Wall Street was ready for a pessimistic opening. Dow futures lost 0.2% to 26,481.00. The S & P 500's futures contracts fell 0.3% to 2,885.50.
ASIA DAY: Japan's benchmark, the Nikkei 225, lost 1.3% to 23,469.39. Hang Seng of Hong Kong fell 0.1% to 26,172.91. The Shanghai Composite index recovered its losses by 0.2% to 2,721.01, after falling 3.7% on Monday. The Australian S & P / ASX 200 lost 1.0% to 1.041.10. Inventories increased in Taiwan, Thailand and Indonesia, but fell in Singapore. Markets in South Korea were closed for a holiday.
DOWNLOADING THE IMF: The International Monetary Fund has revised its outlook for the global economy, citing rising interest rates and rising tensions over trade. The global economy is expected to grow by 3.7% this year, as in 2017, but down from 3.9% in 2018 in July. The report comes on the eve of the October 12 and 14 meetings in Bali, Indonesia, of the IMF and its sister lending organization, the World Bank. The IMF estimates that the Chinese economy is expected to grow 6.6% this year, as previously expected. But the fund has reduced China's economic outlook for 2019 to 6.2 percent, which would be the country's slowest growth since 1990.
US-CHINA TALKS: On Monday, US Secretary of State Mike Pompeo said Washington had a "fundamental disagreement" and "big concerns" over Chinese stocks, ahead of a meeting with Chinese Foreign Minister Wang Yi and another senior official in Beijing. Pompeo said he was eagerly awaiting talks, but his polite and nervous tone highlighted the deteriorating relations between the United States and China. The Trump administration has confronted China with its technology policies and land claims in the South China Sea, and countries have increased tariffs on tens of billions of dollars of reciprocal merchandise.
ANALYST TAKE: IMF report "should in no way be surprised," said Chris Weston of Pepperstone Group Limited, chief executive officer of the fund, Christine Lagarde, warned that trade disputes were weighing on global growth the last week. "However, it is the first time that a recognized organization is ready to formally recognize trade tensions and mark their forecasts, which is a message in itself," he added.
ENERGY: The benchmark US crude added 40 cents to $ 74.69 a barrel of electronic trading on the New York Mercantile Exchange. The contract lost 0.1% to settle at $ 74.29 a barrel in New York. Brent, used for the price of international oil, rose 62 cents to 84.53 dollars per barrel. It fell 0.3% to 83.91 dollars a barrel in London.
CURRENCIES: The dollar slipped to 113.18 yen against 113.21 yen on Monday. The euro fell to $ 1,1475 from $ 1,1489.
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