Stocks fall after IMF dims global economic outlook in report

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Stocks were lower Tuesday as Wall Street sweat over an IMF report painting a dimmer picture of the global economy and ongoing trade tensions, with tariff-sensitive industrial companies among the losers. Treasury yields retreated after a bond selloff sent them to seven-year highs last week. The dollar hit its highest level in seven weeks. 

Here’s the scoreboard:

Dow Jones industrial average: 26,429.96 −56.82 (0.21%)

S&P 500: 2,883.99 −0.44 (0.015%)

Nasdaq Composite7,738.02 +2.07 (0.027%)

  1. The US Ambassador to the United Nations, Nikki Haley, abruptly announced she would step down at the end of the year. President Donald Trump said Haley had discussed taking a break from the position earlier this year, but the Washington Post reports the news came as a surprise to many in the administration. 
  2. The International Monetary Fund downgraded its outlook for the world economy. Citing concerns about trade and emerging markets, the international lender lowered its global growth forecast for this year and next in its World Economic Report.
  3. Trump reiterated threats to further escalate his trade war with China. When asked if he was ready to impose additional duties on Chinese goods if Beijing retaliated, he told a reporter, “Sure, absolutely.” The next round of proposed tariffs would place an import tax on every product the US ships from China.
  4. Google unveiled several new productsTaking center stage were its latest smartphones, the Pixel 3 and the Pixel 3 XL, which have a dual-lens camera system that the technology giant said would allow a wider field of view than rivals. Shares of parent company Alphabet fell 1% following the launch event in New York. 

And a look at the upcoming economic calendar:

  • Monthly inflation numbers are out in the US. 
  • Earnings season kicks off with reports from JPMorgan Chase, Citigroup and Wells Fargo.
  • The International Monetary Fund and the World Bank hold an annual gathering in Indonesia.
  • The UK reports gross domestic product and manufacturing data. 

SEE ALSO: Morgan Stanley’s 2019 forecast for tech stocks has an ominous resemblance to the dotcom-bubble era

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Source: FS – All – Economy – News
Stocks fall after IMF dims global economic outlook in report