Global stocks have been trying to operate in the black in recent days, but the scenario remains very cautious.
Pessimism seems to be fueled on all sides, with rising interest rates around the world, the escalation of the war in Ukraine and, above all, the crisis in the United Kingdom triggered by a package of economic measures proposed by Liz Truss, the new first -British minister.
The package consists of an aggressive tax cut and the imposition of a ceiling on electricity bills, whose expansionist tone of increased public spending in the midst of an unprecedented economic crisis in Europe displeased – and a lot – the market.
Government bonds, called “gilts”, and the pound plummeted in response, forcing the UK to put the measure under review.
Last Tuesday (11), the governor of the Bank of England (the British central bank), Andrew Bailey, however, signaled that he would no longer extend the purchase of bonds in progress, proposed to stem the falls. The pound tumbled to two-week lows in response, and while it was rebounding Wednesday morning, it is still a thermometer of the UK imbalance.
The icing on the cake was the release of the British GDP for the month of August, which fell by 0.3%. The expectation was for growth close to zero.
The cooling of the UK economy is not isolated: the International Monetary Fund (IMF) lowered its forecast for global GDP growth for next year from 2.9% to 2.7%, citing effects of the war in Ukraine, rising interest rates and even a housing crisis in China.
The shocks, in the view of the financial agency, can lead the world into a recession and strong instability in the financial market.
Presented by Thais Herédia and Priscila Yazbek, CNN Money presents a balance of news issues that influence markets, finances and the direction of society and power dynamics in Brazil and worldwide.
*Posted by Tamara Nassif
Source: CNN Brasil
