IMF Downgrades Global Growth Forecast, Antofagasta Announces Job Losses to Counter Copper Slide
October 7, 2015 6:03 am
US stocks experienced choppy waters on Tuesday, with focus shifting towards upcoming quarterly reports in the US, which are expected to reflect a downturn in corporate earnings. The Dow Jones Industrial Average closed 0.08% higher at 16 790.19, whereas the SP 500 lost 0.36% to 1979.92 and the tech heavy NASDAQ composite dropped 0.69% to finish at 4 748.36.
The International Monetary Fund has downgraded its global economic growth forecast this year, reducing its figure to 3.1% from its July prediction of 3.3%. The IMF cited downturns in the emerging markets, a decline in commodity prices and the transitional phase to a consumer spending driven economy in China as justifications for their revised estimate.
Asian stocks hit a seven-week high on Wednesday as oil prices showed some signs of life, supporting battered resource shares and emerging economy currencies, while Tokyo shares fell after the Bank of Japan stood firm on policy. Japan’s benchmark index, the Nikkei closed up 0.75% at 18 322.98.
In the currency markets, the Dollar was down 0.2 percent at 120.03 Yen, pulling back from the day’s high of 120.36. The Yen also pulled away from a 2.5-week low of 86.26 to the Australian Dollar, touched before the BOJ’s decision. The Euro traded at $1.1267, near this week’s high of $1.12895.
In the UK equity space, troubled supermarket Tesco has announced a further big fall in profits as it struggles to turn its business around. Underlying profits for the first half of its financial year were £354 million less than half of the last year’s £779 million. The stock is currently trading down by around 0.83. Meanwhile, Chilean copper mining company Antofagasta Minerals, the operational division of Antofagasta, said on Tuesday it was reducing its workforce by around 7 percent in order to cut costs, the latest victim of the recent rout in the copper market. Antofagasta stock is up by around 3.5% at 556p per share.
US stocks experienced choppy waters on Tuesday, with focus shifting towards upcoming quarterly reports in the US, which are expected to reflect a downturn in corporate earnings. The Dow Jones Industrial Average closed 0.08% higher at 16 790.19, whereas the SP 500 lost 0.36% to 1979.92 and the tech heavy NASDAQ composite dropped 0.69% to finish at 4 748.36.
The International Monetary Fund has downgraded its global economic growth forecast this year, reducing its figure to 3.1% from its July prediction of 3.3%. The IMF cited downturns in the emerging markets, a decline in commodity prices and the transitional phase to a consumer spending driven economy in China as justifications for their revised estimate.
Asian stocks hit a seven-week high on Wednesday as oil prices showed some signs of life, supporting battered resource shares and emerging economy currencies, while Tokyo shares fell after the Bank of Japan stood firm on policy. Japan’s benchmark index, the Nikkei closed up 0.75% at 18 322.98.
In the currency markets, the Dollar was down 0.2 percent at 120.03 Yen, pulling back from the day’s high of 120.36. The Yen also pulled away from a 2.5-week low of 86.26 to the Australian Dollar, touched before the BOJ’s decision. The Euro traded at $1.1267, near this week’s high of $1.12895.
In the UK equity space, troubled supermarket Tesco has announced a further big fall in profits as it struggles to turn its business around. Underlying profits for the first half of its financial year were £354 million less than half of the last year’s £779 million. The stock is currently trading down by around 0.83. Meanwhile, Chilean copper mining company Antofagasta Minerals, the operational division of Antofagasta, said on Tuesday it was reducing its workforce by around 7 percent in order to cut costs, the latest victim of the recent rout in the copper market. Antofagasta stock is up by around 3.5% at 556p per share.
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