Wednesday, 7 October 2015

US stocks end rally, IMF cuts global growth outlook

The US stock market ended its 5-day rally on Wednesday. The S&P 500 fell 0.4 percent with biotechnology stocks in particular being hit hard over concerns with drug pricing and company earnings.

Commodities escaped the falls though. Indeed, the Bloomberg Commodity Index rose 1.7 percent to its highest level since 31 August. West Texas Intermediate crude oil jumped 4.9 percent.

Still, the fall in commodity prices earlier on may already be hurting emerging economies, according to the International Monetary Fund. From Bloomberg:

A slowdown in emerging markets driven by weak commodity prices forced the International Monetary Fund to cut its outlook for global growth this year to 3.1 percent from a July forecast of 3.3 percent. Next year the world economy will expand 3.6 percent, less than the 3.8 percent projected in July.

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