Monday, October 15, 2018

Week's balance: IMF's negative outlook, falling oil prices, and pleasant forex news


The collapse in global stock markets pulled down oil prices, which heralds a reduction in the cost of fuel in Ukraine. At the same time, the IMF has worsened the economic outlook for Ukraine in 2019, not ruling out unemployment growth. At the same time, the hryvnia seems to have stopped its plunge.

The past week was marked by anxious tensions in the global financial markets. On Monday, the International Monetary Fund announced its worsened global economic outlook for 2018 and 2019, with the projected growth decreasing from 3.9% to 3.7%. The reason is trade wars, especially those between the U.S. and China. After the release of the IMF forecast, world's leading stock indices fell to record lows. On Wednesday, U.S. majors went down, including NASDAQ 100, S&P 500, and Dow Jones, all slipping by an average of 3-4%. 

IMF Governor Christine Lagarde, speaking at the annual meeting of the IMF and the World Bank on Thursday, warned of threats of trade and currency wars, stating that they could hinder global economic growth and affect innocent witnesses.


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