Markets Update: Lush Cosmetics to Exit All Westfield Locations, IMF Upgrades Global Growth Forecast
The International Monetary Fund has upgraded its global growth forecast, citing strong investment in AI as a major reason for its better outlook. Meanwhile, cosmetic brand Lush will not be continuing the leases of all its stores in Westfield shopping centres.
Oil prices continue to climb, with Brent crude approaching $US107 overnight. Meanwhile, cosmetic brand Lush will not be continuing the leases of all its stores in Westfield shopping centres.
The ASX opened lower, despite futures trading pointing to a positive start to the session, following a mixed finish on Wall Street.
Market snapshot
- ASX 200: -0.1% to 8,775 points
- Australian dollar: flat at 69.58 US cents
- Wall Street: S&P 500 -0.1%, Dow +0.4%, Nasdaq -0.4%
- Europe: Dax +0.8%, FTSE +1%, Eurostoxx50 +0.7%
- Spot gold: +0.2% to $US4,178/ounce
- Oil: Brent -1.2% to $US105.35/barrel
- Iron ore: -0.1% to $US90.60/tonne
- Bitcoin: +0.25% to$US83,200
IMF upgrades global growth forecast
The IMF has upgraded its global growth forecast to 3.1% for 2026. That's up ever so slightly from the 3% it forecast in July. It says strong investment in AI is a major reason for its better outlook, but downside risks are mounting, including rising debt loads and the Middle East conflict.
At its meeting in Bangkok, the IMF noted a growing divergence between countries benefiting from AI and those bypassed by it. Just 32 countries now account for 95% of global growth, compared to 54 countries in April.
Downward growth revisions have become more widespread, with the IMF downgrading 47% of economies since the April forecasts were issued, including several energy importers outside AI value chains.