Asian markets closed mostly higher after the holiday period, as the concerns among investors eased off that the Chinese financial system is more stable than previously thought and the spike in the inter-bank lending rates also comforted. The benchmark between the banks dropped to 5.06% from its previous spike of 5.33%. The Japanese economy…Read More
Asian markets closed mostly up last night while the Nikkei index jumped to six years high, as investors turned their focus towards the developed part of Asia so that they can bank on better return. The index is the best performing among the Asian index which has gained nearly 53.8% during this year. Traders…Read More
Asian markets closed up on the first trading of the week by adding to their gains which were made last week. Although, it was a shaky start for the Chinese markets but the confidence among investors increased as the trading session gathered momentum. However, traders are still concerned that the spike in the interbank lending could initiate the cash crunch which we saw over the summer. Speculation did fade for a brief moment after the Central bank injected $49.4 billion dollar but if this can really work, we do not know the answer of this yet. The banking stock was certainly under the pressure during the session while the overall market grind higher.Read More
Tumultuous week for the equity market is coming to an end, during which we have seen the biggest firework of this year- the Fed taking it easy on the tapering paddle. We will wrap up this week with another fairly full day of economic data. The equity market across the globe has made its all time high on the back of the optimism, that the recovery and confidence in the US market has returned, and this why, the Fed were confident enough to start wrapping up their ultra loose monetary policy.Read More
The Federal Reserve bank reduced their asset purchased finally yesterday by $10 billion which we were predicting in our analysis throughout this week. Although, many were caught on the wrong side of the market, but the 850 word statement by the Federal Reserve bank, which Bernanke took to extreme length to make sure the US bond does not get out of control and they can calm the market nerve. I think the deal maker was the dovish forward guidance by the Fed, and the result of this filtering through in the European markets today which are trading towards their high of the day.
The fact is that Bernanke has put the ball in motion and it will be up to Janet Yellen to play with it. But, considering she is a dove herself, so every meeting going forward, will be very closely watched by the market, and further tapering of their asset purchase program will remain the main focus among traders. So, not that Janet Yellen has to decide about the tapering, but she will also have to manage the market expectation, a very difficult task indeed.
The day has finally arrived when the most anticipated event of this year will take place today and tapering talk could possibly will find a pillow to sleep. It has been almost 8 months, that we are almost consistently talking about the Fed and their decision to wind up their ultra loose monetary policy. There is certainly no one to blame for this, because after all it was the Fed who fed this idea to the markets, and the investors are trying to get themselves positioned accordingly.Read More