Today, the session started in the red in London, after the IMF's warning about the UK economy.

Overall, it said the global economy is expected to escape a general recession, China is expected to see its GDP grow by 5.2 percent this year as its economy reopens.

For industrialized countries, growth is expected to be meagre at 1.2 per cent this year and 1.3 per cent next year. The Fund no longer predicts a recession in Germany, while France is expected to grow by 0.7% in 2023 and 1.2% next year. The United Kingdom is the only developed nation whose GDP is expected to fall - by 0.6% this year. 

Even Russia should escape recession this year. While the Fund had estimated a decline in Russian GDP of 8.5% in 2022, it is now only 2.2%.

Meanwhile, traders are betting on the Bank of England to hike interest rates for a tenth consecutive time on Thursday.

Among stocks, Pets At Home jumped 10.3% after the company raised its full-year profit forecast.

 

Things to read today:

IMF forecasts UK recession despite other leading economies growing (Financial Times)

The U.S. Consumer Is Starting to Freak Out (WSJ)

Three years on from Brexit, all UK voters are left with is a bitter taste of Bregret (The Guardian)