IMF warns of further contractions ahead
On Wednesday, the IMF once again slashed its forecast for global growth as nations continue to fight the economic crisis caused by COVID-19.
The IMF has predicted that a contraction of 4.9% in global GDP in 2020 should be expected. This is significantly worse than the initial 3% fall it predicted in April.
In addition to this, the IMF has stated that 2021 could see GDP growth of 5.4%, instead of the 5.8% forecast months earlier.
Contraction fears sinks stocks on Wednesday
Gold rallied to as high as $1,780 today, as traders flew to safe havens, with global equities dropping on fears of a surge COVID-19 case, combined with the downgraded economic growth forecasts from the IMF.
In mid-day trading, the Dow Jones fell by 2.83%, with the S&P 500 not far behind, recording a drop of 2.71%.
The NASDAQ, which yesterday recorded a new all-time high, today dropped by 229.9 points, or 2.27%.
The DAX in Germany fell by 3.43% with France’s CAC 40 and the FTSE 100 in the UK down by 2.92% and 3.11% respectively.
Amazon aiming to enter the food delivery race
Amazon is currently hoping to take up a 16% stake in Deliveroo, pending approval from the British government.
In the latest funding round by UK based Deliveroo, estimated to be worth $575 million, Amazon is said to be the lead investor.
“Everyday I assume every position I have is wrong.”Paul Tudor Jones
USDCAD: Gold was again set to win the title, before selling off as the day progressed. However today’s consistent bull is USDCAD, which rallied from a support of 1.34869 to a high of 1.36191.
Bitcoin: After appearing to be heading back towards its $9,800 resistance earlier this week, BTCUSD today fell by close to $500, before consolidating.