Global

World Bank Cuts Global Growth Forecast After ‘Bumpy’ 2014 Start. The World Bank cut its global growth forecast amid weaker outlooks for the U.S., Russia and China, while calling on emerging markets to strengthen their economies before the Federal Reserve raises interest rates. The Washington-based lender predicts the world economy will expand 2.8 % this year, compared with a January projection of 3.2 %. The U.S. forecast was reduced to 2.1 % from 2.8 % while outlooks for Brazil, Russia, India and China were also lowered. The setbacks may be temporary: the 2015 estimate for world economic growth was unchanged at 3.4 %. (Bloomberg)

Global Private Wealth Rises To $152tn. The amount of private wealth held by households globally surged more than 14% to $152 trillion last year, boosted mainly by rising stock markets. Asia-Pacific, excluding Japan, led the surge with a 31% jump to $37tn, a report by Boston Consulting Group says. The number of millionaire households also rose sharply. The report takes into account cash, deposits, shares and other assets held by households. But businesses, real estate and luxury goods are excluded. (BBC)

Asia

China May Inflation At 4-Month High, Room For More Stimulus. China's consumer inflation edged up to a four-month high of 2.5 % in May while factory price deflation eased, reinforcing signs of stabilisation in the economy. Still, inflation remained well within the governments' comfort zone, giving Beijing ample room to step up targeted policy support if necessary to ward off any threat of a sharp economic growth slowdown. China's consumer price index (CPI) rose 2.5 % in May from a year earlier, quickening from a 1.8 % rise in April. The number slightly exceeded market expectations of 2.4 %, data from the National Bureau of Statistics showed on Tuesday. Food prices rose 4.1 % in May from a year earlier, quickening from April's 2.3 % rise, the data showed. The producer price index (PPI) fell 1.4 % in May from a year earlier - the 27th consecutive month of decline - versus a 2 % fall in April and market expectations of a 1.5 % drop. (Reuters)

Taiwan's Sluggish Exports Point To More Weaknesses. Taiwan reported sluggish export growth in May and a surprising decline in imports that suggest demand in its key markets and the global tech sector may not be so solid. The trade-reliant economy is hoping that recovering growth momentum in the United States and Europe will help to partly counter a slowdown in its biggest trading partner, China. However, imports, most of which are components used for re-exports, shrank 2.3% in May from a year earlier, Taiwan’s finance ministry said. That was far below the 8.9% increase estimated in a Reuters poll of 11 economists. Exports edged up 1.4% in May, missing the average forecast of 4% in the poll. (Reuters)

USA

Job Openings In U.S. Climb To Highest Since September ’07. Job openings in the U.S. climbed to an almost sevenyear high in April as employers sought more workers to help manage stronger demand in a rebounding economy. The number of positions waiting to be filled in the U.S. rose by 289,000 to 4.46 million in April, the highest since September 2007, the Labor Department reported today in Washington. The pace of firing also rose. (Bloomberg)

U.S. Small Business, Jobs Data Bolster Growth Picture. The U.S. economy has decisively turned the corner with small business confidence hitting its highest level in more than 6-1/2 years in May and the number of jobs available rising to prerecession levels in April. The brightening growth picture was further boosted by another report on Tuesday showing a bigger-than-expected increase in wholesale inventories. The National Federation of Independent Business said its Small Business Optimism Index rose 1.4 points to 96.6 last month, the highest reading since September 2007. In another report, the Commerce Department said wholesale inventories increased 1.1 % after advancing by the same margin in March. The component that goes into the calculation of GDP - wholesale stocks excluding autos - also increased 1.1 %, bolstering views that inventories will buoy growth this quarter. (Reuters)

Europe

IMF Warns Of Reform Fatigue Holding Back Greece. Greece needs to improve the efficiency of its public sector dramatically to meet fiscal targets and avoid new austerity measures, the International Monetary Fund said on Tuesday. It cautioned that reform fatigue had set in among the ruling coalition. "Adjustment fatigue has set in and the coalition government has a reduced majority of just two seats in the 300-member parliament," the IMF said in its latest review of Greece's progress under its 240-billion-euro bailout. "This is making it difficult to move forward boldly and swiftly with needed reforms." (Reuters)

UK Industrial Output Rises At Fastest Annual Pace Since 2011. UK industrial output grew at its fastest annual pace for three years in April, official figures have shown. Output rose by 3% in April from a year earlier, the Office for National Statistics (ONS) said, the fastest annual rate since January 2011. The narrower measure of manufacturing output rose 4.4% year-on-year, the fastest pace since February 2011. Meanwhile, economists at research group NIESR estimate that UK gross domestic product is now above pre-crisis levels. (BBC)

Currencies

Dollar Up Vs. Euro, Weakens Against Yen. The dollar rose against the euro Tuesday as investors continued to react to the European Central Bank’s decision to cut interest rates and inject liquidity into the euro zone as it seeks to revive the region’s low inflation. The euro fell to $1.3548 from $1.3593 late Monday. That’s the lowest level since Feb. 5, according to FactSet. The dollar fell to 102.33 yen from ¥102.52 late Monday. The ICE dollar index , which pits the greenback against six other currencies, rose to 80.802 from 80.624 late Monday. Elsewhere, the pound declined to $1.6753 from $1.6802 late Monday. The Australian dollar moved up to 93.75 U.S. cents from 93.56 U.S. cents. (Market Watch)

Commodities

U.S. And Brent Oil Down On Profit-Taking, Strong Dollar. Brent crude reversed course to end down on Tuesday, while U.S. oil also fell due to a stronger dollar and profit taking by traders following strong gains on Monday. Brent settled down 47 cents at $109.52 a barrel on Tuesday, after hitting a high of $110.32. U.S. oil slipped 6 cents to settle at $104.35 a barrel after ending up 1.7 % on Monday, its biggest daily gain since April. (Reuters)

Palladium At 3-1/2 Year High After S.Africa Wage Talks Fail. Palladium jumped to its highest in nearly 3-1/2 years on Tuesday, while platinum also rallied after talks to resolve a five-month strike in top producer South Africa collapsed. Palladium, of which South Africa is the second-biggest producer, hit its highest level since February 2011 at $854 an ounce. It was last up 1.7 % at $852.18 as of 4:10 p.m. EDT (2010 GMT). Platinum rose 2.2 % to $1,475.75 an ounce after hitting its highest since May 26 at $1,481.50.00. Spot gold rose 0.7 % to $1,260.30 an ounce. Silver rose 0.8 % to $19.17 an ounce. (Reuters)