IMF growth outlook cut over ‘frothy’ stock risks

The International Monetary Fund (IMF) has cut its outlook for global growth in 2015 and warned about the risks of rising geopolitical tensions and a financial-market correction, as stocks reach "frothy" levels.

The world economy will grow 3.8% next year, compared with a July forecast for 4%, after a 3.3% expansion this year, the Washington-based IMF said.

US growth is helping lead a worldwide acceleration that’s weaker than the fund predicted two and a half months ago as the outlooks for the euro area, Brazil, Russia and Japan deteriorate.