IMF Cuts World Economic Growth Forecasts – Stock Indices Under Pressure! - Forex News by FX Leaders

IMF Cuts World Economic Growth Forecasts – Stock Indices Under Pressure!

Posted Tuesday, October 9, 2018 by
Arslan Butt • 1 min read

As per recent news, the International Monetary Fund has cut its global economic growth forecasts for 2018 and 2019, stating that the US-China trade war continued taking a toll and emerging markets were grappling with tighter liquidity and capital outflows.

As per the IMF, most of the US-China tariff war’s impact is likely to be felt next year. Thus, the IMF cut its 2019 US growth forecast to 2.5% from 2.7% previously. On the other hand, China’s 2019 growth forecast is also down to 6.2% from 6.4%.

Thing is, a country’s growth is represented by the corporate sector and a slowdown in forecast draws a bearish sentiment for the corporate sector. As a result, investors are moving their investments into the dollar and selling the stock market indices!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
Related Articles

Leave a Reply

Notify of