Wednesday, July 10, 2013

Cut in global growth forecast


The International Monetary Fund has cut its forecast for world economic growth for a third time during the year, due to slowing emerging markets and a prolonged recession in the Euro zone. It now expects world output to expand by just 3.1% in 2013, but IMF expects a slight acceleration in growth in 2014 to 3.8%.

The price of crude oil currently trading at US$104.68 (at 9.40 GMT) and if the price rises above US$105 per barrel, will have a negative impact on the economy and also will end up affecting consumer spending in a very negative way.

Today, RSS3 grade closed at `.155.10 a kg at Bangkok, while Malaysian SMR20 closed at `.130.12 a kg. On the Tokyo Commodity Exchange, July futures series closed at ¥231.9, August at ¥233.3, September at ¥232.7, October at ¥233.6, November at ¥234.4 and the contract for delivery in December closed at ¥234.7 a kg. While on the National Multi Commodity Exchange July futures were trading at `.195.52, August at `.192.01, September at `.184.16, October at `.177.47, November at `.171.90 and December at `.172.48 a kg., at 2.30 pm IST.

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