Stocks are falling, and the IMF raised its global economic forecast for the first time in an hour: what you need to know in the morning

Briefly about the main points on international markets.

Photo: depositphotos 0 American indices are declining

Following the results of yesterday’s trading, the S&P 500 lost 1.3%, the high-tech Nasdaq lost 2%, and the Dow Jones fell by approximately 0.8%. Investors are cautious, preparing for the busiest week of the reporting season in the US and a possible increase in interest rates by the Federal Reserve System.

About 20% of S&P 500 companies will report earnings in the next few days. The results will be presented by: McDonald’s and General Motors, Apple, Amazon and Alphabet.

Meanwhile, the S&P 500 is on pace for its best January since 2019. Since the beginning of 2023, the index has grown by approximately 4.6% after falling by 19% last year.

The leaders of the decline among the components of the Dow Jones index were Johnson & Johnson (-3.7%), Chevron Corp. (-2.9%), 3M Co. (-2.3%), as well as Microsoft Corp. (-2.2%).

Share price of Ford Motor Co. decreased by 2.9%. Tesla Inc. stock price fell by 6.3% after trading, General Motors Co. — by 4.4%.

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The broad index of Asian shares (excluding Japan) MSCI AC Asia ex Japan Index lost about 1.3% today, Japan’s Nikkei fell by about 0.2%, South Korea’s Kospi fell by 0.7%, Singapore’s STI fell by 0.1% , and the Chinese Shanghai Composite and the Hong Kong Hang Seng decreased by 0.4% and 1.3%, respectively.

China’s economic activity is recovering after abandoning the Covid Zero policy

According to the National Bureau of Statistics of the People’s Republic of China, the country’s Manufacturing Purchasing Managers’ Index (PMI) rose from 47 to 50.1 in December. The non-manufacturing index, which measures activity in both the services and construction sectors, rose to 54.4 from 41.6, beating economists’ estimates of 52. The recovery in economic activity in China is long-awaited news for the world economy , which is experiencing difficulties and demonstrates a slowdown in growth rates.

For the first time in an hour, the IMF raised the forecast of the world economy

According to experts’ forecasts, world GDP will increase by 2.9% in 2023, which is 0.2% more than was forecast in October last year. All thanks to stable consumer spending in the US and the recovery of China, which supported demand against the background of a number of economic risks. And although the forecast 2.9% is a slowdown compared to the growth of the world economy by 3.4% in 2022, the IMF expects that this indicator will reach the bottom this year, and in 2024 it will already accelerate to 3.1% .

Source: Ministry of Finance

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