***World Market***
U.S. stocks dropped, following markets in Europe and Asia lower, after demand for withdrawals from British bank Northern Rock Plc caused borrowing costs to climb.
JPMorgan Chase & Co., Citigroup Inc. and American International Group Inc. led declines among financial companies. Microsoft Corp. fell after the world's largest software maker lost a European antitrust appeal, forcing the company to pay a record fine.
JPMorgan Chase & Co., Citigroup Inc. and American International Group Inc. led declines among financial companies. Microsoft Corp. fell after the world's largest software maker lost a European antitrust appeal, forcing the company to pay a record fine.
****Asia Group****
The US Fed meets tomorrow, again. This time, it’s especially crucial as the meeting holds the key to the US housing slump. All eyes are on the Fed to see how they will act, whether they will cut rates or they won’t. And if they do, how much?
The markets also closed weak today on account of some negative cues from Europe. While Indian markets mostly stayed in the green, Asian markets weren't as lucky. Europe after opening in red sliped further, FTSE was down 2% following the suit are CAC and DAX. Some of Asian markets came under pressure, Taiwan was down 1%, Kospi ended flat and Hang Seng was down over 1%.
One of the big triggers for this came from UK, where depositors queued up to withdraw money from Northern Rock despite assurances from Financial Services Authority in the UK that those deposits are safe.
The fact that people were pulling deposits suggested that the bank may face difficulties maintaining assets. If there are any tie-ups or backlogs in short-term funding, in both the lending and commercial paper markets, it could have spillover implications for other assets, and could impair earnings of banks.
Though markets across the world have discounted a 25 bps rate cut by the Fed, there is yet uncertainty over what the Fed will do, which is keeping investors edgy.
there's a possibility of the markets selling off even with a 25 bps cut, atleast for the short-term. He reasons that the stocks are the cheapest now in 6-10 years. That is why, a lot of people will not want to short in the market at this level. So, i thinks the market most probably has perhaps more upside than downside at this level.
**Market OnTuesday***
Market has a Support at Nifty 4475 and 4435 level,Ready for some correction this week.There's a possibility of the markets selling off even with a 25 bps cut, atleast for the short-term.You may see some short in market tomorrow.
Note : This correction is only Minor if market will not below 4400.
No comments:
Post a Comment