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![Speculation about a possible Fed rate hike by the end of the year has added to a rocky global economic climate and pulled US stocks down [Xinhua]](http://thebricspost.com/wp-content/uploads/2015/11/233041503_8-e1447098207504.jpg)
Speculation about a possible Fed rate hike by the end of the year has added to a rocky global economic climate and pulled US stocks down [Xinhua]
At press time on Monday, the Dow Jones Industrial Average was down 1.29 per cent.
The Nasdaq and S&P 500 were both down similarly around 1.18 per cent.
The negative sentiment was also exacerbated by renewed expectations that the Federal Reserve would lean on positive data about the US economy to raise interest rates before the end of the year.
Meanwhile, the Organisation for Economic Co-operation and Development said that “further sharp downturn in emerging market economies and world trade has weakened global growth to around 2.9 per cent this year – well below the long-run average – and is a source of uncertainty for near-term prospects”.
In its Economic Outlook report on Monday, the OECD revised downwards its global economic forecast from 3 to 2.9 per cent for 2015, and from 3.6 to 3.3 per cent for 2016. It said there would be a gradual recovery to 3.6 in 2017.
The OECD also said that economic growth in China will decrease from the government’s projected 7 per cent to 6.8 per cent in 2015. It forecast an eventual 6.2 per cent in 2017 as the government sought to rebalance the economy.
“Achieving this rebalancing, whilst avoiding a sharp reduction in GDP growth and containing financial stability risks, presents significant challenges,” said the OECD report, which is released twice a year.
Meanwhile, China’s Xinhua news agency quoting the General Administration of Customs reported yesterday that foreign trade had fallen 9 per cent year on year.
The BRICS Post with inputs from Agencies
