News Column

Stocks Slip as World Bank Cuts Global Growth Forecast

June 11, 2014

Steve Rothwell, The Associated Press

New York Stock Exchange (AP)
New York Stock Exchange (AP)

U.S. stock futures slipped after the World Bank downgraded its forecast for the global economy this year, citing a bitter American winter and the political crisis in Ukraine.

KEEPING SCORE: Less than an hour before the start of regular trading, Dow Jones industrial average futures fell 66 points, or 0.4 per cent, to 16,876. Standard & Poor's 500 index futures dropped eight points to 1,941 and Nasdaq 100 futures dropped 16 points to 3,783.

GLOBAL GROWTH: In an outlook released late Tuesday, the World Bank said it said it expects the world economy to grow faster 2.8 per cent this year versus 2.4 per cent in 2013. But its new estimate is weaker than the 3.2 per cent expansion it had predicted in January.

TAKING PAUSE: The stock market took a breather on Tuesday, logging a small loss, after a string of record closes. After slumping earlier this year, the stock market has been on a slow and steady climb since April. In recent weeks, a number of encouraging economic reports have helped push the S&P 500 up 5.5 per cent this year.

TOUCH SCREEN TECH: Synaptics jumped $12.70, or 19 per cent, to $79.22 in premarket trading Wednesday after the maker of touch-screen technology said it would buy smartphone and tablet chipmaker Renesas SP Drivers for $475 million. Because of the deal, Synaptics also raised its fourth-quarter revenue outlook.

BONDS AND COMMODITIES: As stocks fell, government bonds rallied. The yield on the 10-year Treasury note, which falls when prices rise, dropped to 2.63 per cent from 2.65 per cent on Tuesday. The price of oil was little changed from Tuesday at $104.34.


Original headline: Stock futures slip as World Bank cuts global growth forecast; Synaptics surges on acquisition

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Source: © 2014 The Canadian Press. All rights reserved.

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