India among few bright spots in global economy, says IMF

The remarks from International Monetary Fund (IMF) Chief Christine Lagarde came at the meeting of G20 Finance Minister and Central Bank Governors where they also discussed monetary policy uncertainties. The IMF said India is among the few bright spots in the global economy as G20 Finance Ministers began their two-day meeting here against the backdrop of concerns over Chinese economic slowdown looming large on world markets.The remarks from International Monetary Fund (IMF) Chief Christine Lagarde came at the meeting of G20 Finance Minister and Central Bank Governors where they also discussed monetary policy uncertainties.Lagarde told the gathering that between advanced and emerging economies, there are problems in most places in the advanced world while in emerging economies, there are problems in China although not that big as stock markets are making it to be, according to officials present at the meeting. Among emerging economies if there is any growth, that is in India

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Global Economy Weekahead: China fears linger; focus on Fed

Fears over the health of the Chinese economy kept world markets on edge last week and China country will remain in focus, along with the question of whether the Federal Reserve will raise interest rates next month.Those concerns sent world stocks, commodities and currencies on a roller-coaster ride last week, and purchasing manager surveys due on Tuesday are expected to show manufacturing contracted during August in the world’s second-biggest economy.”China, the epicentre of the week’s moves, is set to remain in focus over the next week as markets attempt to assess whether the worst of the sell-off has been seen,” said Philip Shaw, chief economist at Investec.”Despite September lift-off seemingly now off the cards, the timing of the FOMC’s decision to raise interest rates thereafter remains data-dependent, hence Friday’s non-farm payrolls report will still be a release worth watching.”The case for raising rates in September now seems less compelling, Federal Reserve Bank of New York President William Dudley said last week, leading several large banks to push back expectations.”You are probably not getting it any clearer from a central banker than that,” said Harm Bandholz, chief US economist at UniCredit as he moved his call from September to December.Markets will therefore be watching business surveys, factory orders and trade data from the world’s largest economy as well as the employment numbers due on Friday.”The week finishes with non-farm payrolls for August, typically the biggest market mover globally, and definitely on the Fed’s radar given unemployment is already close to full employment and the Fed looking to gauge whether there is `some’ further labour market improvement,” economists at National Australia Bank said.A strong labour market, cheaper gasoline and higher home prices have boosted household wealth, helping to support consumer spending.The U.S. economy grew much faster than initially thought in the second quarter on solid domestic demand.

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US market post worst week in years on China fears

World stock markets tumbled on Friday and US oil prices dove briefly below USD 40 a barrel sparked by fresh evidence of slowing growth in China, sending investors scurrying to the safety of bonds and gold.Stocks on Wall Street and in Europe fell more than 3 percent in a global rout spurred by a more than 4 percent fall in Shanghai stocks .SSEC.Thomas Lee, managing partner at Fundstrat Global Advisors in New York, said it was hard to say what was behind the sell-off in stocks but a market bottom may be close at hand.”There’s no shortage of things people can cite, from the movement in currencies, to the weakness in commodities and fears about China,” Lee said.

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EUR/USD surges more than 1% to its highest level in nearly two months

Investing.com – Investing.com—EUR/USD soared more than 1% for the second consecutive session to move to its highest level in nearly two months, amid a massive sell-off in equity markets worldwide as concerns of a recession in China mounted. The currency pair traded between a range of 1.1229 and 1.1389 before settling at 1.1384, up 0.0144 or 1.28% on Friday’s session

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