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.



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James Marlay

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?