What happened overnight? The IMF trimmed global growth forecasts, tipping 3.3% growth in 2014 (down 0.1 percentage points) and 3.8% growth in 2015 (down 0.2pp). European shares:The FTSEurofirst 300 index fell by 1.5% while the UK FTSE lost 1.0% and the German Dax fell by 1.3%. But Australia's major miners were mixed in London trade with shares in BHP Billiton down by 0.4% while Rio Tinto gained 0.8%. US shares: Dow Jones lost 272 points or 1.6% with the S&P 500 index down by 1.5% while the Nasdaq eased by almost 70 points or 1.6%. Aussie dollar: rose from lows near US87.55c to highs around US88.30c, ending the US session near US88.15c. Oil: Brent crude fell by US68c or 0.7% to US$92.11 a barrel while the US Nymex crude price fell by US$1.49 or 1.6% a barrel to US$88.85 a barrel. Commodities: Nickel was up the most, gaining 1.5%, but tin lost 0.8%. The Comex gold futures quote rose US$5.10 an ounce or 0.4% to US$1,212.40 per ounce. Iron ore was up by US$1.10 on Tuesday or 1.3% to US$80.00 a tonne.
Craig, what is your take on the implications of the IMF downgrade for equities? Short term looks like it will add to volatility but longer term does it have a major impact? .... potential prospect of further downward revisions?