Investors take refuge in dollar as global markets slump
European shares followed Asia into the red as poor earnings from UBS compound what was a catastrophic 2018 for Europe's banking sector
London — Pessimism about global growth drove down world shares and commodity markets on Tuesday and left investors seeking refuge in the dollar, government bonds and gold. The International Monetary Fund's (IMF) warning of a darkening outlook on Monday, after China's confirmed its slowest growth rate in nearly 30 years, continued to weigh on the mood. European shares followed Asia into the red as disappointing earnings from Swiss bank UBS compounded what had been a catastrophic 2018 for Europe's banking sector, which lost nearly 30% of its value over the year. In its World Economic Outlook report, the IMF predicted the global economy would grow at 3.5% in 2019 and 3.6% in 2020, down 0.2 and 0.1 percentage point respectively from last October's forecasts. The downgrades heavily reflected weakness in Europe though, with Germany hurt by new car emission rules, Italy under market pressure due to Rome's recent budget standoff with the EU and Brexit worries aplenty too. "We have seen a li...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.