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CLOSED MARKETS: The world faces the worst recession since the Great Depression, says the IMF; The FTSE slides as other European indices rise in bullish relaxation
- UK stock markets underperformed compared to European indices
- The FTSE 100 closed 0.9% at 5,791; FTSE 250 fell 2%
- The pound has reached a new one-month high against the dollar, reaching $ 1.26
- The IMF predicts that the world economy will shrink 3% this year, and the UK economy 6.5%
- OBR said UK GDP could fall 35% this quarter and unemployment reached 10%
Better-than-expected Chinese trade data and loosening of tightening measures pushed shares in Asia and Europe higher today as some nations tried to restart their economy.
But the FTSE 100 and 250 fell back shortly after opening, as the total blockade in the UK remains in place. They closed 0.9 percent and 2 percent, respectively.
Meanwhile, the International Monetary Fund said the “Great Closure” will cause the world’s worst recession since the Great Depression, far worse than the 2008 financial crisis.
The IMF expects the world economy to shrink by 3 percent this year, with the UK economy by 6.5 percent. That’s grim, but even better than the Office of Budgetary Responsibility projections, also released today, indicating that UK GDP could drop 35 percent in the current quarter, and unemployment hit 10 percent.
In company news, Mitchells & Butlers has obtained a waiver until mid-May to avoid a technical default on its debt obligations due to closings under Britain’s coronavirus blockade, and the company has enough cash to finance its business. in the second half of the year. .
Clothing retailer Next reopened its website today, but had to close it again just hours after an increase in orders. He said he will reopen the website tomorrow.
Elsewhere, nearly 3,000 gyms and entertainment centers, and up to 100,000 jobs inside are facing loss of landlords, threatened with eviction for unpaid rent during the coronavirus blockade.
