Early Monday morning a mixed outlook on the global economy from the International Monetary Fund had Wall Street in flux, but the sign that encourages is that the U.S. government is still able to find buyers for its bond offerings. This kept the session’s losses from growing Wednesday afternoon.

The worldwide economic growth forecast has been raised for 2010 from 1.9% to 2.5% by the IMF, but the IMF also warned that as the recession ends recovery will be slow. It is expected by IMF that the global economy will contract by 1.4% in 2009, it is worse than the previous estimate of 1.3%.

The forecast has came as investors brace for the latest round of quarterly earnings from the corporate sector, and will be more focused on projections for the remaining year and beyond. After Wednesday Alcoa gets one of the first cracks at impressing a discerning marketplace, issuing second-quarter results. It has been expected that the aluminum producer, will post a loss of 38 cents a share, lost 18 cents, or 1.9%, to $9.23.

U.S. indexes were weighed down with 90 minutes to the closing bell, as the investors loose their hopes for a robust economic recovery. 61 points 0.8%, to 8,103 have been lost by the Dow Jones Industrial average; the S&P 500 has shown a fall of 10 points, or 1.1%, to 871; and the Nasdaq dropped 14 points, or 0.8%, to 1,732.

The latest economic story has also become the reason to lower down the commodities. It has send crude oil down $2.13 to $60.80 a barrel, which in turn hampered shares of Exon Mobil. The oil company among the Dow’s laggards, it has fall down 88 cents, or 1.3%, to $65.68.

Though a limit has been put on the losses by the solid demand for a $19 billion auction of 10-year Treasury notes. This has reassured investors that there is still ample demand for U.S. government debt. A high yield of 3.37% has been drawn by the auction and better demand than the past few.

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