Global slowdown is much closer than expected

European and Asian markets are losing ground on Tuesday due to fears around global slowdown. By the start of trading in the U.S., futures on the S&P 500 lost 0.4%, as much as they lost on Monday.
Alexander Kuptsikevich
IMF

The main market mover was the IMF, that cut growth forecasts for the European and Chinese economies, and note that trade conflicts may cause further cuts in forecasts.

Among the important published data, the relatively good performance showed UK labor market, which helped the British pound to turn to mid-day growth and counter the overall negative sentiments on the global markets.

The average wages growth rate continues to gain momentum, rising to 3.4% y/y (including bonuses), which is the highest rate in more than 10 years. In addition, the unemployment rate fell back to 4.0%. Some concern is caused by the jobless claims increase, but this figure has remained stable since September.

The index of business sentiment in Germany also surprised by growth to -15, while it was expected to fall from -17.5 to -18.8. Europe’s locomotive seems to be picking up speed after a decline at the end of last year. However, the same cannot be said about the eurozone as a whole. The same index for common currency block remains at a minimum for the last 6 years. Such weak indicators for the eurozone clearly contradict the ECB’s stance to tighten policies later this year.

The European Central Bank representatives declare that the rate increase will happen no sooner than autumn 2019, but over time the chances will rise that the actual increase will happen much later than this date, which may put pressure on the euro in the near future.

This article was written by FxPro

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US