11.06.2014 - The World Bank lowered its growth forecast

Deceleration of Chinese industry, severe weather conditions in the United States this winter and the crisis in Ukraine led to a revision of prospects for global economic growth in 2014. Thus, the World Bank lowered its growth forecast by 0.4% to 2.8%. It should be noted that in the second half of the year, GDP growth will accelerate in the developed countries, but will slow down in the developing.

In developed countries, the reason for the growth was the cut of government spending, improvement on the labor market and in the construction sector. In emerging countries reasons for the slowdown were the fall in the property market and sanctions against Russia and the tense situation in Ukraine.

The main risk remains the "heavy landing" of the Chinese economy, which will negatively affect commodity exporting countries. On the background of the abovementioned risks, we expect the correction on the world stock markets.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.