Global stock markets under pressure after gloomy IMF report.
Global stock markets under pressure after gloomy IMF report. European stock markets only briefly got a boost from stronger than expected data out of the U.K. and Germany and as of 11:37GMT DAX and FTSE 100 are down -0.57% and -0.65%, after a broadly lower close in Asia overnight. A gloomy IMF outlook on world growth yesterday with significant downward revisions to forecasts for major economies revived recession fears and saw risk aversion picking up again. Topix and Nikkei lost -0.63% and -0.47% respectively. The Hang Seng lost -0.70% and the CSI 300 -1.33% after the IMF cut its global growth forecast to 3.5% from 3.7% in the October projection. A tweet from U.S. President Trump calling on China to stop "playing around" and do a "real" trade deal added to the negative backdrop for markets. China's President Xi Jinping meanwhile stressed the need to maintain political stability, which underpinned lingering concerns about the impact of slowing growth in China, after Bloomberg reports suggested yesterday that talks are making little progress on intellectual property rights. The earnings season is also in full swing and reports from UBS this morning disappointed and only added to lingering risk aversion.