U.S. stock futures were lower Monday morning, indicating stocks would begin the week on a down note as the World Bank predicted a deeper slump in 2009 and said a global recovery was 'unusually uncertain.' Meanwhile, the Federal Reserve policymakers are preparing to meet this week, but investors mostly expect no change in policy.The World Bank has cut its 2009 global growth forecast, saying the world economy will shrink by 2.9%, up from 1.7%. The bank also cut growth forecast for most countries and warned that economic damage to developing countries "has been much deeper and broader than previous crises."
No key economic indicators are due for release Monday, but investors will turn their attention to the Federal Reserve two-day policy meeting that starts tomorrow. The Fed will issue a statement on Wednesday including its interest rate decision, possibly giving indication of any rate hikes to come in the future. Mostly, investors expect the Fed to stand pat, but some also expect rate hikes to come within a year as the bank tries to balance stimulating the economy with keeping inflation in check.
Overseas, Asia stocks were generally stronger, but cautious ahead of the Fed meeting. European stock markets fell Monday on concerns about the economic outlook, even as German business confidence rose for a third month in June, providing further evidence that the recession in Europe's largest economy is easing.
Meanwhile, oil prices fell to near $68 a barrel Monday, ending their recent bull run, on concerns over a weak U.S. economy and the dollar's rise, which tends to pull investors away from commodities.
And some good news for the labor market comes after a new report based on a survey of small- to mid-sized U.S. manufacturers has found that 44% of the companies plan to begin hiring workers again as soon as next year if the economy rebounds as they expect.
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Reader Comments (Page 1 of 1)
6-22-2009 @ 9:14AM
clikdawg said...
" ... 44% of the companies plan to begin hiring workers again as soon as next year if the economy rebounds as they expect."
That's less than half; it's next year; and it's based on an assumption the World Bank just sorta said was unlikely.
How is this "good news"? How is ANYBODY'S wishful thinking "good news"? And yet, day after day, this entire site keeps presenting groundless visualizations as accomplished fact -- in the same way a man might BS his wife by saying: "I have a real good feeling about how my luck's gonna change at the casino tonight, sweetheart ... and that's good news for our bank account! Just go on ahead and order the new drapes, and see if you can find any of that kinda steak Obama eats on Wednesdays -- I'm hungry as sin, and 44% of me plans on bringing home more than I brought home last night, 'cause tonight The House ain't gonna win ... I am!"
Jeez, y'all sound more like carnival barkers in a not-too-savory sideshow with each passing moment ...