Goldman Sachs Lowers U.S. Economic Recession Forecast: Goldman Sachs, the American investment bank,
has lowered its forecast for the likelihood of a U.S. economic recession to 15% over the next twelve months,
citing stronger-than-expected September labor market data.
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Chinese Stocks Plunge at Fastest Pace Since the COVID-19 Pandemic
Chinese stocks saw a significant decline at the close of trading on Wednesday
due to profit-taking and investor disappointment after Beijing authorities failed to announce additional stimulus measures during Tuesday’s meeting.
The CSI 300 index dropped by 7.05%, or 300 points, closing at 3,955 points,
marking its worst daily decline since February 2020, during the COVID-19 pandemic.
Meanwhile, the Shanghai Composite index fell by 6.62%, or 230 points,
settling at 3,258 points, and the Shenzhen Composite index declined by 8.65%, or 181 points, closing at 1,917 points.
This downturn follows gains of over 5% in Chinese stocks during Tuesday’s session,
as markets reopened after the week-long “Golden Week” holiday.
Tourism sector stocks were among the most brutal hit,
the sector’s index dropped by 8.9% after data showed that
spending during the “Golden Week” holiday had not reached pre-pandemic levels.
Goldman Sachs Lowers U.S. Economic Recession Forecast
Goldman Sachs has reduced its forecast for the probability
of a U.S. economic recession to 15% over the next twelve months,
based on the stronger-than-expected September labor market data.
The bank also reaffirmed its expectations for the path of interest rate cuts,
anticipating that the U.S. Federal Reserve will continue to reduce interest rates consecutively by 25 basis points,
bringing the final interest rate in the U.S. to between 3.25% and 3.5% by June 2025.
Additionally, Goldman Sachs noted that there is no clear explanation
for the moderation in labor market growth despite the rise in job opportunities,
which coincides with solid GDP growth in the United States.
Goldman Sachs Lowers U.S. Economic Recession Forecast