European benchmarks down following IMF growth downgrades

<p>The major European benchmarks are subdued following the IMF’s global growth downgrades.</p>

The majority of European stock indices have opened lower this morning (October 9th), following news the International Monetary Fund (IMF) has downgraded its global expansion forecasts.

In its World Economic Outlook report – which has been released ahead of its next biannual meeting in Tokyo – the IMF has revised down predictions for international growth this year to just 3.3 per cent, when in July this figure was 3.5 per cent.

This makes 2012 the slowest for expansions since 2009.

One of the biggest downgrades was applied to the UK's economic output, which is expected to shrink by 0.4 per cent in 2012, compared to July's anticipated 0.2 per cent growth.

The report followed yesterday's launch of the European Stability Mechanism and the IMF highlighted the importance of having such a facility in the troubled eurozone.

At 08:50 BST, the FTSE 100 was down marginally to 5838.1 points, while the Dax lost 0.3 per cent to 7267.3 points and the Cac 40 retreated 0.1 per cent to 3403.2 points.

Find the latest spread betting strategies for the international markets at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.