Global activity: stabilization across the word, more moderation in China - Wells Fargo

Analysts from Wells Fargo, see some stabilization in economic activity across the world but they warn about more moderation in Chinese economic growth.

Key Quotes: 

“With the global economy moving slowly along, the International Monetary Fund (IMF) released its global
forecast. The IMF lowered the growth rate for the United States economy, perhaps catching up with the rest of analysts as the IMF’s economic forecast is produced every quarter compared to many other forecasts that are made on a monthly basis.”

“Meanwhile, energy and metal prices have moved higher or are off their recent low readings, which could help some emerging economies hurt by the collapse in these prices and export growth since the start of the tapering process in the United States back in 2013.”

“Although we see some stabilization in economic activity across the world, we also see some more moderation in Chinese economic growth, which could help keep pressure on export growth as well as on commodity prices going forward.”

“The good news is that the Brazilian economy, while still in recession, is starting to show some improvement, which will  help global economic growth. Meanwhile, economic activity in the Eurozone has also
remained steady with very few signs, so far, that the Brexit decision has had a large negative effect on the region. At the same time, although the Brexit decision has recently sent the British pound lower, the real economic effects of the Brexit decision on the U.K. economy have, so far, been limited.”

“Within this global environment, the Australian central bank, the RBA, decided to keep its benchmark interest rate, the cash rate, steady at 1.50 percent in what was Governor Philip Lowe’s first monetary policy meeting after replacing outgoing Governor Glenn Stevens. Colombia Misses a Gold