Repost: Global Markets Rally

Check out the latest stock market performance from LOM Financial, today:

Image source: LOM Financial

Markets ended the abbreviated week as a warning of a global slowdown was offset by strong earnings. The MSCI World Index ended the week up 0.07% while the S&P 500 lost -0.21%.

 

IMF Warns of a Global Slowdown

The International Monetary Fund cut 2019 global growth estimates by 0.2% to 3.5%, citing risks of a more significant downward correction was rising. In the US, the effects of fiscal stimulus are expected to unwind. Mexico experienced a significant downgrade to growth reflecting lower private investment. The high levels of public and private debt mean capital markets should be more sensitive to downturns than they have been historically.

 

The IMF report mirrors the World Bank January 2019 assessment (published on 1/8/19), which sees headwinds from the removal of accommodative policies that supported the protracted recovery along with more extreme weather events creating challenges in developed and developing countries. Lax credit markets have resulted in a growing number of developing countries holding questionable levels of debt.

 

Market Wrap Up

Earnings releases have been mixed but strong positive revenues and EPS surprises on Wednesday from Proctor and Gamble, Comcast, and United Tech Corp marked the turnaround that helped bring markets back to levels near the beginning of the week.

 

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