Stocks Down Amid Warning Of “Exceptional Uncertainty” From World Bank
On Tuesday, European stocks opened in the red as the ongoing war in Ukraine, the pandemic, and inflation shadowed the global economic outlook.
The FTSE 100 dropped 0.3%, while France’s CAC was down 1.1%. In Germany, the DAX fell 1%. Across the pond, US benchmarks closed lower on Monday. Wall Street’s S&P 500 dropped around 0.1%, as did Nasdaq and Dow Jones.
World Bank Chief Economist Carmen Reinhart has warned that the global economy is experiencing a period of “exceptional uncertainty.” Reinhart cited an “array of disruptions”, including lockdowns in China, soaring food prices, and the conflict in Ukraine. She said she would not rule out further downgrades to the growth outlook.
On Monday, the World Bank slashed its global growth forecast for the year by almost a full percentage point, to 3.2% from 4.1% because of the added economic pressures of the war in Ukraine.
“Unsurprisingly the weak economic outlook, uncertain geopolitical situation and rising inflationary environment has prompted the World Bank to cut its 2022 global growth outlook,” said Michael Hewson, chief market analyst at CMC Markets. “This move is likely to be followed by the IMF later this week as it gets set to meet in Washington.”
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