IMF says recession is ending

But a recovery isn't expected until 2010. Oil continues to fall. Investors await Alcoa's earnings after the close. G-8 summit begins in Italy.

Some optimism about the global economy didn't give stocks a lift today.

The International Monetary Fund raised its 2010 growth forecast to 2.5%, up from the forecast of 1.9% growth it made in April. The outlook for this year wasn't as rosy: The IMF forecast a contraction of 1.4% in 2009, worse than an April forecast for a 1.3% decline.

But stocks were moving lower ahead of this afternoon's report from Alcoa (AA). At 12:55 p.m. ET, the Dow Jones Industrial Average ($INDU) was down 41 points to 8,122. The Nasdaq Composite Index ($COMPX) had lost 13 points to 1,734, and the Standard & Poor's 500 Index ($INX) had shed 8 points to 873.

The global economy will emerge from the recession with help from economies like China, the IMF said. Europe will recover after the U.S. and Japan. The fund cautioned that a recovery will be "sluggish" and said that repairing the international banking system is a priority.