Fundamental Analysis | Sharp Trader

Oct182013

US futures and European markets are up; Chinese GDP surprised investors

US futures and European markets are trading higher once again after a record close by the S&P on Wall Street last night. The Chinese economic data- which came out at a much better level than anticipated has also helped the trader’s appetite for riskier assets.

The Chinese GDP for the third-quarter came in at 7.8% which was well above from the previous quarter’s reading of 7.5% and thus, confirming that the growth in the country is on the right track. However, the retail sale number for the country did raise some eyebrows when it came in at 13.3%; on a softer side and below expectations of 13.5%- given that the country is trying to boost its domestic consumption.

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Oct172013

Political Saga comes to an end in the US; European markets trading lower

Asian markets closed mostly higher by erasing some of their losses which were made yesterday. It certainly seems that the politicians have got hold of common sense and thought that for once they should make a use of this and put an end to this government shutdown and raise the debt ceiling. However, if they have made use of all the brain cells that they have, perhaps not, because the entire circus would return to the capital as government shutdown compromise has kicked the can till 15^th of January and the debt ceiling until 7^th of February.

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Oct162013

All eyes on Washington: While Fitch puts US ‘AAA’ rating on a negative watch

European markets are trading mostly lower during the early hours of trading by erasing some of their gains which were made yesterday. Investors are focused towards Washington and wondering if the politicians can finally understand the urgency of resolving this political gridlock which has once again called for Deja vu. The rating agency, Fitch, has put the biggest economy of the world, U.S on a negative watch due to illiterate attitude which politicians are using to resolve the debt ceiling and the government shutdown dispute.

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Oct142013

US political deadlock punishing the markets while Chinese Imports improved

The irrational gains in the equity market which we’ve seen towards the end of the last week on the back of the optimism that there could be a resolution over the US debt ceiling has evaporated this morning. Thanks to the violent reaction shown by the angry traders this morning who are pushing the sell button, as we head towards the third week of the US government shutdown with no resolution insight.

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Oct112013

US Futures are trading higher over a possible debt resolution; but government remains shut down

The US futures and the European markets are trading higher on the positive sentiment among traders that the political saga in the US will come to its end and there will be a resolution over the debt ceiling among the Republicans and the Democrats.

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Oct102013

US futures bouncing back on debt ceiling hopes

The political saga continues in the US for the 10th day, While the US government remains shut for another day. Traders are still concerned that Washington may pass the deadline to raise the debt ceiling which could certainly lead the country to a default.

The short term solution may not be a solution

However, there has been some progress made on the political gridlock front as the president Barack Obama met Democrats yesterday and meeting the Republicans today. The hope is that both sides will reach done sort of agreement which will enable them to raise the debt ceiling in a short term.

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