Global Markets Trade Down

Global stock markets have enjoyed a mixed day of trading today with some remnants of last week’s interest rate cuts keeping values close to scratch on a day in which the International Monetary Fund predicted a worldwide economic slowdown.

The news from the International Monetary fund hit markets across the world, with European markets literally saved by the closing bell from sustaining any more losses on the day. As a result, some analysts are predicting that tomorrow’s opening trade could start downhill.

The US exchanges did have time to experience the brunt of investor reaction to the International Monetary Fund’s announcement, particularly in response to comments regarding the significance of the impact the credit crunch will have on the US economy.

The Dow Jones in New York had seen losses of 55.36 points 13764.8 by the close of the day in reaction to the news from the IMF, which predicted foremostly that the credit crunch would severely impact upon US growth figures for 2008. Additionally, former Federal Reserve chairman Alan Greenspan gave a 50/50 split that the US economy ends up in recession over the course of the coming year. The NASDAQ exchange was down 4.13 on the day to close 2667.1. The S&P 500 was down 8.74 points to 1517.0.

European markets were largely lucky to escape losses of any significance, although the impact of US close of trade today is likely to have some bearing on early morning trade tomorrow.

The FTSE 100 stock exchange in London actually gained on the day, albeit by just 9.20 points to close at 6465.9 amidst the rest of the markets’ unrest.

In Frankfurt the DAX exchange was down by 6.51 points by the close to finish at 7787.9, still heavily up from a good week of trade to Friday. Meanwhile, its French counterpart the CAC 40 was down slightly losing 8.16 points to close at 5692.5.

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