The International Monetary Fund is setting a cautious financial tone for 2019. Ahead of the start of the World Economic Forum in Davos, the IMF has downgraded its global economic forecast from 3.7 to 3.5 per cent. IMF officials say China’s slowing economy, its trade war with the US and Brexit drama are all major concerns for the economy. But, one of those may be rectified soon as officials with the US and China intend to meet again next week for another round of trade talks.
The IMF is also slightly downgrading Canada’s economic forecast from 2 per cent to 1.9.
The TSX is in the red for the start of the trade week, coming off an 11-day win streak. The Bay Street index is down 34 points to 15,269. Experts say it was dragged by lower energy prices, however crude is rebounding from an early morning slump with US oil gaining to 54.18 a barrel.
Wall Street is quiet today as the US recognizes Martin Luther King Jr. Day.