Global Markets Fall as IMF Looks to Reduce Its Growth Forecast for 2016 6th April 2016

It was a bleak day for global markets on Tuesday as nearly all the major indexes posted losses with many seeing profit taking ahead of US earnings season which is due to start next week.

Baumann Group

Global Markets Fall as IMF Looks to Reduce its Growth Forecast for 2016 6th April 2016

It was a bleak day for global markets on Tuesday as nearly all the major indexes posted losses with many seeing profit taking ahead of US earnings season which is due to start next week.

European markets were down as data out of Germany looked to put a question mark on the country's economic position. Poor factory orders pulled the DAX down over 2.5% during the day.

Evan Campbell

PR Manager

There was a host of news that helped push the indexes lower yesterday.

The weakness in Japan’s economy has been highlighted again as the government looks to re-work some of its QE measures in an attempt to continue its battle against deflation. The 3rd largest economy has been implementing policies in a desperate attempt to battle its current issues. The growing social costs and recent fall in oil and strong $USD have all had a negative effect on the Yen and exports.

Asian Index Closes 5th April:

ASX 200 – 5,000.40 (-1.37%)

Nikkei 225 – 15,732.82 (-2.42%)

Hang Seng – 20,177.00 (-1.57%)

SSE Comp – 3,053.07 (+1.45%)

European markets were down as data out of Germany looked to put a question mark on the country’s economic position. Poor factory orders pulled the DAX down over 2.5% during the day.

The data came at the same time the head of the IMF’s Ms. Lagarde, advised that the International Monetary Fund may look to reduce its global growth forecast next month below 3.4%. The chief said that the global economies recovery was slowing down and particularly fragile with the slowdown in China and other developing countries.

Europe has been under pressure lately as Greece’s bailout hit the headlines and the UK look to have a referendum soon to decide whether or not to leave the EU.

European Index Closes 5th April:

FTSE 100 -  6,091.29 (-1.19%)

DAX 90 – 9,563.36 (-2.63%)

CAC 40 – 4,250.28 (-2.18%)

In the US, the news out of Asia and Europe helped traders decide to take profits ahead of a potentially painful earnings season. The markets started negatively and remained that way throughout Tuesday trading to end down by roughly 1% across the board.

Next week earnings start to be reported in earnest and many analysts believe it will be a rather painful session. Yesterday saw the S&P 500 erase all of its gains over the past 7 weeks. Taking almost 13% off the index is has been suggested that earnings could be as much as 4.2% lower than last year with Manufacturing and Petrochemical companies looking to suffer the most.

US Index Closes 5th April:

Dow Jones – 17,603.32 (-0.75%)

S&P 500 – 2,045.17 (-1.01%)

NASDAQ – 4,843.93 (-0.98%)

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