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

After the huge news last month that Just Eat and GrubHub were joining forces to create the world’s largest food delivery firm,  Amazon have today entered the race for this title.

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

Biggest Bull

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.

Biggest Bear

Bitcoin: After appearing to be heading back towards its $9,800 resistance earlier this week, BTCUSD today fell by close to $500, before consolidating.