US Markets
Dow 8,479 36.08
Nasdaq 1,465 -7.29
S&P 500 857 5.58
Europe
London 4,171 18.29
Paris 3,210 37.45
Frankfurt 4,560 6.09
Asia at 9 00 AM
Tokyo 8,288 -35.61
Hong Kong 13,174 295.82
SGX Nifty 2680 +40 pts
Commodities
Oil
$51.08 0.31
Gold
$820.50 0.10
Market Outlook:
US Markets ended flat, our markets faced huge selling pressure yesterday after having a gap up open. The weakness is likely to continue and nifty is expected to slip more. Every rise in markets invites short sellers , there is no trigger to keep the market in an uptrend as of now. As expiry nears expect big volatility in markets.
News Today:
* US Economy shrank by 0.5% in the third quarter shows the revised numbers, consumer confidence inches up on the back of lower fuel prices.
* U.S. Plans $800 Billion in Lending to Ease Crisis.
*U.S. banks posted earnings of $1.7 billion in the third quarter of 2008, the industry's second-weakest results since 1990.
* Ailed Firm AIG Says CEO willl get a pay of $1.
* BHP Billiton withdrew its bid for Rio Tinto, commodities took a hit as the news broke.
* China's economy is facing a deceleration. World Bank came up with a report that says Chinas growth will slip to 7.5% next year. The worlds engine of growth is slowing down evidently.
* India's petroleum minister hints of a rate cut in oil prices, will bring down inflation in turn creates room for further rate cuts.
MarketS DailY - Nov 25
US Markets
Dow 8,443 396.97
Nasdaq 1,472 87.67
S&P 500 852 51.78
Europe
London 4,153 372.00
Paris 3,172 290.85
Frankfurt 4,554 426.92
Asia at 9 00 AM
Tokyo 7,911 207.75
Hong Kong 12,964 506.4
SGX Nifty 2841 +137 pts
Commodities
Oil
$53.89 -0.61
Gold
$819.50 27.70
Market Outlook:
US markets continued its rally on monday on the back of positive news flows in the form of citi group bail out and Obama's announcement of his economic team, As said in our outlook yesterday the pull back in indian markets would continue.The best strategy to handle this rally is to trade and get out at the resistance levels.
News Today:
* Citi Group was bailed out by the US government, Citigroup to Halt Dividend and Curb Pay. Shares rose more than 50% in trade yesterday.
* Obama announced his economic team yesterday, nominated Tim geither for Treasury secretary and lawrence summers as chief economic adviser.
* Britain Offers $30 Billion Stimulus Plan.
* Gold and crude recover on the back of citi bail out. Gold now trading over $800.
* Goldman sachs says indian property prices are in for a big correction. Expects a fall of 20-30% in property prices.
* Indian Realty sector is facing tough times, Many projects have been put on hold. Unitech stock fell by 8% in yesterdays trade.
Dow 8,443 396.97
Nasdaq 1,472 87.67
S&P 500 852 51.78
Europe
London 4,153 372.00
Paris 3,172 290.85
Frankfurt 4,554 426.92
Asia at 9 00 AM
Tokyo 7,911 207.75
Hong Kong 12,964 506.4
SGX Nifty 2841 +137 pts
Commodities
Oil
$53.89 -0.61
Gold
$819.50 27.70
Market Outlook:
US markets continued its rally on monday on the back of positive news flows in the form of citi group bail out and Obama's announcement of his economic team, As said in our outlook yesterday the pull back in indian markets would continue.The best strategy to handle this rally is to trade and get out at the resistance levels.
News Today:
* Citi Group was bailed out by the US government, Citigroup to Halt Dividend and Curb Pay. Shares rose more than 50% in trade yesterday.
* Obama announced his economic team yesterday, nominated Tim geither for Treasury secretary and lawrence summers as chief economic adviser.
* Britain Offers $30 Billion Stimulus Plan.
* Gold and crude recover on the back of citi bail out. Gold now trading over $800.
* Goldman sachs says indian property prices are in for a big correction. Expects a fall of 20-30% in property prices.
* Indian Realty sector is facing tough times, Many projects have been put on hold. Unitech stock fell by 8% in yesterdays trade.
MarketS DailY - Nov 24
US Markets
Dow 8,046 494.13
Nasdaq 1,384 68.23
S&P 500 800 47.59
Europe
London 3,781 -94.03
Paris 2,881 -99.16
Frankfurt 4,127 -92.79
Asia at 9 00 AM
Tokyo 7,911 207.75
Hong Kong 12,429 -230.41
SGX Nifty 2675 -55 pts
Commodities
Oil
$50.54 0.61
Gold
$791.80 43.10
Market Outlook:
US Market rallied on the news that Obama will chose NY Fed chairman Tim Giethner as the next treasury secretary. Market will look up to a lot of data that is expected in US markets this week. A lot depends on how citi bank and General Motors are going to survive. A flow of positive news will give a good bear market rally. Look to play the rally and exit.
News Today:
* Citi Bank near a deal with US government to help it to survive , Citi's market cap drops by $160 billion.
* 22 US banks have collapsed this year.Three banks failed on Friday, marking the highest volume of bank failures in one day since the savings-and-loan crisis of the late 1980s.
* Obama to announce economic team nominations on Monday.
* GM is weighing in Bankruptcy as an option. The Big 3 automakers failed to impress the congress committee on why they should be bailed out. Focus shifted to citi bank.
* Tata's JLR talking to UK govt for $1.48 bn loan.
* Citi India holds equities worth 8000 crores. Be watch full on their holdings.
* Billionaire hedge fund manager George Soros says More Money is Needed For U.S. Bailout.
* Indian Govt readies Rs 50,000 crore plan for infra projects.
* India’s largest private airline Jet Airways has now proposed to slash salaries of its top keyexecutives by 25% and a cut of 10% for pilots in a bid to control costs.
Dow 8,046 494.13
Nasdaq 1,384 68.23
S&P 500 800 47.59
Europe
London 3,781 -94.03
Paris 2,881 -99.16
Frankfurt 4,127 -92.79
Asia at 9 00 AM
Tokyo 7,911 207.75
Hong Kong 12,429 -230.41
SGX Nifty 2675 -55 pts
Commodities
Oil
$50.54 0.61
Gold
$791.80 43.10
Market Outlook:
US Market rallied on the news that Obama will chose NY Fed chairman Tim Giethner as the next treasury secretary. Market will look up to a lot of data that is expected in US markets this week. A lot depends on how citi bank and General Motors are going to survive. A flow of positive news will give a good bear market rally. Look to play the rally and exit.
News Today:
* Citi Bank near a deal with US government to help it to survive , Citi's market cap drops by $160 billion.
* 22 US banks have collapsed this year.Three banks failed on Friday, marking the highest volume of bank failures in one day since the savings-and-loan crisis of the late 1980s.
* Obama to announce economic team nominations on Monday.
* GM is weighing in Bankruptcy as an option. The Big 3 automakers failed to impress the congress committee on why they should be bailed out. Focus shifted to citi bank.
* Tata's JLR talking to UK govt for $1.48 bn loan.
* Citi India holds equities worth 8000 crores. Be watch full on their holdings.
* Billionaire hedge fund manager George Soros says More Money is Needed For U.S. Bailout.
* Indian Govt readies Rs 50,000 crore plan for infra projects.
* India’s largest private airline Jet Airways has now proposed to slash salaries of its top keyexecutives by 25% and a cut of 10% for pilots in a bid to control costs.
MarketS DailY - Nov 21
US Markets
Dow 7,552 -444.99
Nasdaq 1,316 -70.30
S&P 500 752 -54.14
Europe
London 3,875 -130.69
Paris 2,980 -107.47
Frankfurt 4,220 -133.89
Asia at 9 00 AM
Tokyo 7,703 -570.18
Hong Kong 11,959 -339.91
SGX Nifty 2488 -82 pts
Commodities
Oil
$49.62 -4.00
Gold
$748.70 12.70
Market Outlook:
Another bout of selling in US markets. DOW loses nearly 900 points in 2 days.
Citi group is mulling at selling itself to avoid a collapse. Financial stocks took a beating in US yesterday. Asia trading in deep red. Nifty is expected to retest its lows and take support at 2250-2300 levels.
News Today
* The current fall in world markets is second only to the fall that happened in Great Depression times of 1920. S&P falls to lowest level since 1997.
* Citi group plunges another 25% in yesterdays trade, all is not well in citi group.
* Goldman sachs and JP Morgan shares too took a beating , signs that market is sensing something that we are not aware of.
* Bank of Japan holds interest rate unchanged at 0.3%, warns economic activity "increasingly sluggish.
* Crude slips below $50, indicates the fall in demand due to economic distress.
* Rupee hits an all time low of 50.59 against dollar. High probability that market will follow suit.
* Singapore falls into recession, cuts 2009 outlook.
Dow 7,552 -444.99
Nasdaq 1,316 -70.30
S&P 500 752 -54.14
Europe
London 3,875 -130.69
Paris 2,980 -107.47
Frankfurt 4,220 -133.89
Asia at 9 00 AM
Tokyo 7,703 -570.18
Hong Kong 11,959 -339.91
SGX Nifty 2488 -82 pts
Commodities
Oil
$49.62 -4.00
Gold
$748.70 12.70
Market Outlook:
Another bout of selling in US markets. DOW loses nearly 900 points in 2 days.
Citi group is mulling at selling itself to avoid a collapse. Financial stocks took a beating in US yesterday. Asia trading in deep red. Nifty is expected to retest its lows and take support at 2250-2300 levels.
News Today
* The current fall in world markets is second only to the fall that happened in Great Depression times of 1920. S&P falls to lowest level since 1997.
* Citi group plunges another 25% in yesterdays trade, all is not well in citi group.
* Goldman sachs and JP Morgan shares too took a beating , signs that market is sensing something that we are not aware of.
* Bank of Japan holds interest rate unchanged at 0.3%, warns economic activity "increasingly sluggish.
* Crude slips below $50, indicates the fall in demand due to economic distress.
* Rupee hits an all time low of 50.59 against dollar. High probability that market will follow suit.
* Singapore falls into recession, cuts 2009 outlook.
MarketS DailY - Nov 20
US Markets
Dow 7,997 -427.47
Nasdaq 1,386 -96.85
S&P 500 807 -52.54
Europe
FTSE 100 4,005.68 –4.82% –202.87
DAX 4,354.09 –4.92% –225.38
CAC 40 3,087.89 –4.03%–129.51
Asia at 9 00 AM
Tokyo 7,918 -355.13
Hong Kong 12,232 -583.88
SGX Nifty 2535 -74 pts
Commodities
Oil
$52.85 -0.77
Gold
$736.00 3.30
Market Outlook:
Big sell off in wall street, The FED minutes released yesterday painted a vague picture on the status of the economy. FED expects no growth in US markets till 2011. Sell of spreads to Asia , markets plunge. Likely to be a weak day for India too, Nifty will try to take supports near the lows made in October.
News Today
* US markets fall to near 6 year lows. S&P 500 breaks the low made in october.
* The US consumer-price index drops 1% its biggest drop on record has raised more concern about deflation.
* Global Markets fall to their lowest levels since 2003.
* Citi shares in record slump falls 25% in yesterdays trade, as credit-default swap spreads widen. Shares fall to 15 year low
* Nikkei slips below 8000 in early trade.
* The chief executives of G.M., Ford and Chrysler were unable to convince lawmakers in congress for a bail out.
* Commodities fall to multi year lows. Oil slips to $52 on falling demand.
* Rating agency Fitch puts ICICI on notice, warns of ratings downgrade on account of the quality of its assets.
MarketS DailY - Nov 19
US Markets
Dow 8,425 151.17
Nasdaq 1,483 1.22
S&P 500 859 8.37
Europe
London 4,103 -29.29
Paris 3,150 -31.72
Frankfurt 4,516 -41.49
Asia at 9 30 AM
Tokyo 8,139 -189.70
Hong Kong 12,824 -91.74
SGX Nifty 2670 -20
Commodities
Oil
$54.42 0.03
Gold
$732.70 -9.30
Market Outlook:
Yesterday Market witnessed selling pressure at higher levels, Markets are not sustaining any upmoves. its important that nifty shows some strength in coming days in order to hold it from retesting the lows made in october. US markets are trading close to the lows made on oct 27th.
News Today
* CEOs of GM, Chrysler and Ford appealed in dire language for taxpayers to help their industry.
* Wholesale inflation in U.S fell by a record 2.8%.
* US Home builders' confidence in the market plunged to a record low.
* Indian Govt slaps 5% import duty on steel in a protectionist measure.
* Asian Banks are latest in laying off employees to cut costs. HSBC and Mitsubishi UFJ announce lay off's .
* India FM asks realty , auto makers to cut down prices. Industry plays down any possibility of price cuts.
* RIL is trying to raise around Rs 5000 crores from LIC to meet its cash requirements.
Dow 8,425 151.17
Nasdaq 1,483 1.22
S&P 500 859 8.37
Europe
London 4,103 -29.29
Paris 3,150 -31.72
Frankfurt 4,516 -41.49
Asia at 9 30 AM
Tokyo 8,139 -189.70
Hong Kong 12,824 -91.74
SGX Nifty 2670 -20
Commodities
Oil
$54.42 0.03
Gold
$732.70 -9.30
Market Outlook:
Yesterday Market witnessed selling pressure at higher levels, Markets are not sustaining any upmoves. its important that nifty shows some strength in coming days in order to hold it from retesting the lows made in october. US markets are trading close to the lows made on oct 27th.
News Today
* CEOs of GM, Chrysler and Ford appealed in dire language for taxpayers to help their industry.
* Wholesale inflation in U.S fell by a record 2.8%.
* US Home builders' confidence in the market plunged to a record low.
* Indian Govt slaps 5% import duty on steel in a protectionist measure.
* Asian Banks are latest in laying off employees to cut costs. HSBC and Mitsubishi UFJ announce lay off's .
* India FM asks realty , auto makers to cut down prices. Industry plays down any possibility of price cuts.
* RIL is trying to raise around Rs 5000 crores from LIC to meet its cash requirements.
MarketS DailY - Nov 18
US Markets
Dow 8,274 -223.73
Nasdaq 1,482 -34.80
S&P 500 851 -22.54
Europe
London 4,126 -106.65
Paris 3,188 -103.00
Frankfurt 4,554 -156.47
Asia at 9 30 AM
Tokyo 8,439 -83.41
Hong Kong 13,184 -345.59
SGX nifty 2770 -29
Commodities
Oil
$55.21 0.26
Gold
$742.00 -0.50
Market Outlook:
Market is likely to open flat to negative taking cues from asian markets. Yesterday markets made an attempt to hold the lows and bulls and bears were fighting it out to take charge. Volatility will shoot up in times like these. Broader market still remains in negative region, call position have build up at 2900 and 3000 levels. Fresh shorts are likely to take place at higher levels.
News Today
* Yahoo CEO Yang to step down.
* Citi Bank says it will outlay 50,000 people and cut costs by 20%, along with selling risky assets.
* Top officials in Goldman and UBS wont get bonuses for this year.
* The Federal Reserve said that US industrial output rose 1.3 percent last month.
* US Senate is likely to unveil bill for aid to U.S. auto makers.
* Crude closes at a 22-month low below $55 a barrel .
Dow 8,274 -223.73
Nasdaq 1,482 -34.80
S&P 500 851 -22.54
Europe
London 4,126 -106.65
Paris 3,188 -103.00
Frankfurt 4,554 -156.47
Asia at 9 30 AM
Tokyo 8,439 -83.41
Hong Kong 13,184 -345.59
SGX nifty 2770 -29
Commodities
Oil
$55.21 0.26
Gold
$742.00 -0.50
Market Outlook:
Market is likely to open flat to negative taking cues from asian markets. Yesterday markets made an attempt to hold the lows and bulls and bears were fighting it out to take charge. Volatility will shoot up in times like these. Broader market still remains in negative region, call position have build up at 2900 and 3000 levels. Fresh shorts are likely to take place at higher levels.
News Today
* Yahoo CEO Yang to step down.
* Citi Bank says it will outlay 50,000 people and cut costs by 20%, along with selling risky assets.
* Top officials in Goldman and UBS wont get bonuses for this year.
* The Federal Reserve said that US industrial output rose 1.3 percent last month.
* US Senate is likely to unveil bill for aid to U.S. auto makers.
* Crude closes at a 22-month low below $55 a barrel .
MarketS DailY - Nov 17
US Markets
Dow 8,497 -337.94
Nasdaq 1,517 -79.85
S&P 500 873 -38.00
Europe
London 4,233 63.76
Paris 3,291 22.01
Frankfurt 4,710 60.72
Asia at 9 30 AM
Tokyo 8,558 95.45
Hong Kong 13,565 22.76
SGX nifty 2882 -5
Commodities
Oil
$55.75 -1.29
Gold
$742.50 37.50
Market Outlook:
The week end G 20 meet ended with no conclusive measures or any positive news that markets were expecting. Markets will again look for global cues and news flows. News flows in the pipeline will continue to be negative. Tone continues to be bearish for coming week. Market would face selling pressure at higher levels.
News Today
* Japan enters into first recession in 7 years, 4th major economy to announce recession after the crisis started.
* US Retail sales plunge record 2.8% in October.
* GM's is gasping to survive, Automakers had asked for a $25 billion bail out from US Government. If GM fails it would send a ripple effect across the globe. Vendors of GM will take a big hit around the globe.
* Pakistan takes IMF aid of $7.4 billion its economy collapsed.
* The RBI has now said that the global financial crisis was having a bigger than expected impact on the economy .
Dow 8,497 -337.94
Nasdaq 1,517 -79.85
S&P 500 873 -38.00
Europe
London 4,233 63.76
Paris 3,291 22.01
Frankfurt 4,710 60.72
Asia at 9 30 AM
Tokyo 8,558 95.45
Hong Kong 13,565 22.76
SGX nifty 2882 -5
Commodities
Oil
$55.75 -1.29
Gold
$742.50 37.50
Market Outlook:
The week end G 20 meet ended with no conclusive measures or any positive news that markets were expecting. Markets will again look for global cues and news flows. News flows in the pipeline will continue to be negative. Tone continues to be bearish for coming week. Market would face selling pressure at higher levels.
News Today
* Japan enters into first recession in 7 years, 4th major economy to announce recession after the crisis started.
* US Retail sales plunge record 2.8% in October.
* GM's is gasping to survive, Automakers had asked for a $25 billion bail out from US Government. If GM fails it would send a ripple effect across the globe. Vendors of GM will take a big hit around the globe.
* Pakistan takes IMF aid of $7.4 billion its economy collapsed.
* The RBI has now said that the global financial crisis was having a bigger than expected impact on the economy .
MarketS DailY - Nov 14
US Markets
Dow 8,835 552.59
Nasdaq 1,597 97.49
S&P 500 911 58.99
Europe
London 4,169 -12.81
Paris 3,269 35.50
Frankfurt 4,650 28.72
Asia at 9 30 AM
Tokyo 8,500 261.04
Hong Kong 13,615 393.83
Commodities
Oil
$58.59 0.35
Gold
$705.00 -13.30
Market Outlook:
The Asian market are rallying on the back of +ve cues from US markets. Our markets are likely to open gap up. Inflation has come in as a positive surprise, but its history. All eyes are now on growth expectations and not on inflation. The fall in inflation gives room for RBI to further bring down interest rates. An rate cut as early on Friday evening is not ruled out. Markets will look upto any +Ve action from RBI. Europe is likely to open in green. Germany has officially announced its recession with the growth slipping into -ve region.
Read reviews on global economy click here
News Today
* DOW swing 900 points in yesterdays trade, rallied after president Bush's address. Finished with a 550 point gain 3rd biggest gain for it on record.
* US Markets managed to bounce back from the lows that it made on Oct 27, whether it will hold or not, a lot depends on the G20 meet this Sunday.
* Citibank and Bank of America both slide to decade-plus lows, GE at 12 year low.
* US Jobless claims at a 7 year high.
* India's Inflation slips to single digits after 6 months, chances are it might fall to sub 5% levels in 2 months.
Dow 8,835 552.59
Nasdaq 1,597 97.49
S&P 500 911 58.99
Europe
London 4,169 -12.81
Paris 3,269 35.50
Frankfurt 4,650 28.72
Asia at 9 30 AM
Tokyo 8,500 261.04
Hong Kong 13,615 393.83
Commodities
Oil
$58.59 0.35
Gold
$705.00 -13.30
Market Outlook:
The Asian market are rallying on the back of +ve cues from US markets. Our markets are likely to open gap up. Inflation has come in as a positive surprise, but its history. All eyes are now on growth expectations and not on inflation. The fall in inflation gives room for RBI to further bring down interest rates. An rate cut as early on Friday evening is not ruled out. Markets will look upto any +Ve action from RBI. Europe is likely to open in green. Germany has officially announced its recession with the growth slipping into -ve region.
Read reviews on global economy click here
News Today
* DOW swing 900 points in yesterdays trade, rallied after president Bush's address. Finished with a 550 point gain 3rd biggest gain for it on record.
* US Markets managed to bounce back from the lows that it made on Oct 27, whether it will hold or not, a lot depends on the G20 meet this Sunday.
* Citibank and Bank of America both slide to decade-plus lows, GE at 12 year low.
* US Jobless claims at a 7 year high.
* India's Inflation slips to single digits after 6 months, chances are it might fall to sub 5% levels in 2 months.
Global Economy Review - Nov 13 , 2008
World Economy:
The world's entry into a period of recession is certain now, with the 3 biggest economies of the world already slipped into recession and with 2 of those economies the US and Germany already announced recession officially.
The Emerging economies including the BRIC countries are facing severe slow down. IMF has forecast that chinas growth will slow down to 8% and india to 6.1% in 2009. Russia is facing tough challenge ahead of it with its stocks markets falling heavily and shows investors losing confidence over the economy
The period of inflation is a history and we are staring at a possible deflation phase where prices are falling below production cost. Retail sales across the developed economies are at a multi year lows. Oil has slipped to $55 dollars, even with the production cuts announced by the OPEC. Gold prices have also fallen to an year low.
The landscape of the US financial sector has changed forever. There are 3 super banks now in the US namely Bank of America, JP Morgan & Wells Fargo with a cumulative net worth of nearly $2 Trillion in terms of assets. Some Investment banks have changed their business model into banking model. Some like Lehman bros have filed for bankruptcy. Some like Meryl lynch. have merged with other institutions.
The Auto sector in the US is the next domino to fall in the crisis. GM is staring at a possible bankruptcy. What was once thought to be an impossible event has happened now. GM is the largest Auto maker in the world in terms of global sales. Too big to fail ? is it ??
The slow down is slowly spreading to the global economies and companies. Arcelor Mittal the largest steel maker has announced a 30% cut in production. In India tata corus has slashed production, Ashok leyland has announced a 12 day work cut in a month. Global corporate giants like Intel, Cisco, GE all have slashed their growth forecast and has cited caution in their future outlook.
In terms of Jobs US unemployment has hit 6.5%, normally in recession times unemployment rate rises to 9-10%. UK has lost 1000's of jobs. In India signs of job cuts are setting in as the effects of slow down are being felt slowly across all sectors.
Stock Markets:
US Markets are nearing the lows made on OCT 27th, Nasdaq made a new closing low. Its important that the recent lows hold or else we may see another down fall in world equities.
Chinese stocks market made a new multi year low with the markets losing almost 60% of its value from its highs.
The Japanese Yen is trading near the lows of 94 that it made on OCT 27th. Its important that these levels should hold. Else we may witness another round of carry trade unwinding. Weaker yen will affect Japanese exporters.
In India Nifty might retest it lows of 2252 , there is a chance of it to take supports at 2500 levels. But then again a lot depends on world market cues.
Money Markets :
The Money Markets have thawed considerably. It was literally frozen a few weeks back with the LIBOR rates peaking at above 4%. Banks were not lending to one another. The situation has improved and LIBOR has fallen substantially to near 2% levels.
Global Central Bankers are cutting interest rates across the board in an effort to improve the credit flow in the system. More rate cuts can be expected in coming weeks.
The G20 leaders meet in Washington on Nov 15th, The outcome will send important signals to the markets. A lot depends on what measures are undertaken after the meet.
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The world's entry into a period of recession is certain now, with the 3 biggest economies of the world already slipped into recession and with 2 of those economies the US and Germany already announced recession officially.
The Emerging economies including the BRIC countries are facing severe slow down. IMF has forecast that chinas growth will slow down to 8% and india to 6.1% in 2009. Russia is facing tough challenge ahead of it with its stocks markets falling heavily and shows investors losing confidence over the economy
The period of inflation is a history and we are staring at a possible deflation phase where prices are falling below production cost. Retail sales across the developed economies are at a multi year lows. Oil has slipped to $55 dollars, even with the production cuts announced by the OPEC. Gold prices have also fallen to an year low.
The landscape of the US financial sector has changed forever. There are 3 super banks now in the US namely Bank of America, JP Morgan & Wells Fargo with a cumulative net worth of nearly $2 Trillion in terms of assets. Some Investment banks have changed their business model into banking model. Some like Lehman bros have filed for bankruptcy. Some like Meryl lynch. have merged with other institutions.
The Auto sector in the US is the next domino to fall in the crisis. GM is staring at a possible bankruptcy. What was once thought to be an impossible event has happened now. GM is the largest Auto maker in the world in terms of global sales. Too big to fail ? is it ??
The slow down is slowly spreading to the global economies and companies. Arcelor Mittal the largest steel maker has announced a 30% cut in production. In India tata corus has slashed production, Ashok leyland has announced a 12 day work cut in a month. Global corporate giants like Intel, Cisco, GE all have slashed their growth forecast and has cited caution in their future outlook.
In terms of Jobs US unemployment has hit 6.5%, normally in recession times unemployment rate rises to 9-10%. UK has lost 1000's of jobs. In India signs of job cuts are setting in as the effects of slow down are being felt slowly across all sectors.
Stock Markets:
US Markets are nearing the lows made on OCT 27th, Nasdaq made a new closing low. Its important that the recent lows hold or else we may see another down fall in world equities.
Chinese stocks market made a new multi year low with the markets losing almost 60% of its value from its highs.
The Japanese Yen is trading near the lows of 94 that it made on OCT 27th. Its important that these levels should hold. Else we may witness another round of carry trade unwinding. Weaker yen will affect Japanese exporters.
In India Nifty might retest it lows of 2252 , there is a chance of it to take supports at 2500 levels. But then again a lot depends on world market cues.
Money Markets :
The Money Markets have thawed considerably. It was literally frozen a few weeks back with the LIBOR rates peaking at above 4%. Banks were not lending to one another. The situation has improved and LIBOR has fallen substantially to near 2% levels.
Global Central Bankers are cutting interest rates across the board in an effort to improve the credit flow in the system. More rate cuts can be expected in coming weeks.
The G20 leaders meet in Washington on Nov 15th, The outcome will send important signals to the markets. A lot depends on what measures are undertaken after the meet.
Download PDF format of this report : Click here
Indias Growth forecast from various quarters
Morgan Stanley FY 09 Growth forecast : 5.7%
GoldMan sachs FY 09 Growth forecast : 6.7%
RBI FY 09 Forecast : 7.5%
IMF FY 09 Growth forecast : 6.7%
FM Chidambaram : 8%
PM Manmohan singh : 7.5%
GoldMan sachs FY 09 Growth forecast : 6.7%
RBI FY 09 Forecast : 7.5%
IMF FY 09 Growth forecast : 6.7%
FM Chidambaram : 8%
PM Manmohan singh : 7.5%
MarketS DailY - Nov 12
US Markets
Dow 8,694 -176.58
Nasdaq 1,581 -35.84
S&P 500 899 -20.26
Europe
London 4,247 -157.23
Paris 3,336 -169.34
Frankfurt 4,762 -263.95
Asia at 9 30 AM
Tokyo 8,701 -108.50
Hong Kong 13,657 -384.17
SGX Nifty 2895 -27 pts
Oil
$58.93 -0.40
Gold
$732.80 -13.70
News Today
* Asian Markets continue the losing streak for the second day as Yen strengthens against dollar.
* US markets closed weak on concerns of slow consumer spending.
* US Gov announces a new mortgage plan to modify Fannie, Freddie loans
* GM stock closes under $3 ,first time since 1946. Chances of GM filing bankruptcy is becoming evident , Read More on GM crisis Click here
* Oil prices fell below $60 a barrel to a 20 month low.
* China retail sales expand 22% in October , fastest pace in 11 years.
* India Inc Bonus issuance in 2008 hits a 4-year low.
* India's IIP numbers will be announced today, Street expectations are between 5.5% - 7%.
Dow 8,694 -176.58
Nasdaq 1,581 -35.84
S&P 500 899 -20.26
Europe
London 4,247 -157.23
Paris 3,336 -169.34
Frankfurt 4,762 -263.95
Asia at 9 30 AM
Tokyo 8,701 -108.50
Hong Kong 13,657 -384.17
SGX Nifty 2895 -27 pts
Oil
$58.93 -0.40
Gold
$732.80 -13.70
News Today
* Asian Markets continue the losing streak for the second day as Yen strengthens against dollar.
* US markets closed weak on concerns of slow consumer spending.
* US Gov announces a new mortgage plan to modify Fannie, Freddie loans
* GM stock closes under $3 ,first time since 1946. Chances of GM filing bankruptcy is becoming evident , Read More on GM crisis Click here
* Oil prices fell below $60 a barrel to a 20 month low.
* China retail sales expand 22% in October , fastest pace in 11 years.
* India Inc Bonus issuance in 2008 hits a 4-year low.
* India's IIP numbers will be announced today, Street expectations are between 5.5% - 7%.
Demise of General Motors
General Motors
General Motors Corporation (GM) founded in 1908 is the world's largest auto maker measured by global industry sales. General Motors employs about 2 lakh people around world. General Motors is one of the prestigious brands featuring in the Fortune Global 500 list.
In the recent years the US automakers are bearing the brunt of global credit crisis and are posting huge losses. The 3 peers in US auto industry GM, Chrysler and Ford are facing immense challenge in order to even survive in the current crisis.
GM stock is at a 6 decade low, the company is struggling to raise credit to keep running. Recently Deutsche Bank Downgraded the stock to worthless with a value of $0. The company has asked US government for a bail out. Wall street analysts say that GM could run out of cash and is in path of bankruptcy before the end of the year.
The US Government is considering a $25 billion bail out for the 3 ailing auto makers. But the doubts are even with a bail out GM is likely to stare bankruptcy sooner or later. Further developments are awaited.
General Motors Corporation (GM) founded in 1908 is the world's largest auto maker measured by global industry sales. General Motors employs about 2 lakh people around world. General Motors is one of the prestigious brands featuring in the Fortune Global 500 list.
In the recent years the US automakers are bearing the brunt of global credit crisis and are posting huge losses. The 3 peers in US auto industry GM, Chrysler and Ford are facing immense challenge in order to even survive in the current crisis.
GM stock is at a 6 decade low, the company is struggling to raise credit to keep running. Recently Deutsche Bank Downgraded the stock to worthless with a value of $0. The company has asked US government for a bail out. Wall street analysts say that GM could run out of cash and is in path of bankruptcy before the end of the year.
The US Government is considering a $25 billion bail out for the 3 ailing auto makers. But the doubts are even with a bail out GM is likely to stare bankruptcy sooner or later. Further developments are awaited.
MarketS DailY - Nov 11
US Markets
Dow 8,871 -73.27
Nasdaq 1,617 -30.66
S&P 500 919 -11.78
Asia at 9 30 AM
NIKKEI 8,960.77 -120.66
HANG SENG 14,686.81 -57.82
Europe
London 4,404 38.96
Paris 3,506 36.63
Frankfurt 5,026 87.07
SGX Nifty 3124 -51
Oil $60.52 -1.89
Gold $746.50 12.30
News Today
* DOW closed in red as concerns turn back to the slowing economy.
* GM shares hit a 6-decade low, Auto maker is suffering lack of funds and the stock was downgraded by major brokerages.
* Continued contraction forecast in 2009 for Japanese, U.S , British and eurozone economies. Blue Chip Economic Indicators predicts current recession will be deeper, longer than 2001 or 1990-91.
* AIG gets $150 bn govt bailout; posts huge loss of $24 billion.
* Australian business confidence at record low, the economy is facing tough times.
* Indian realty developers are taking the brunt of the slow down , DLF mega mall on hold as rentals slip.
Dow 8,871 -73.27
Nasdaq 1,617 -30.66
S&P 500 919 -11.78
Asia at 9 30 AM
NIKKEI 8,960.77 -120.66
HANG SENG 14,686.81 -57.82
Europe
London 4,404 38.96
Paris 3,506 36.63
Frankfurt 5,026 87.07
SGX Nifty 3124 -51
Oil $60.52 -1.89
Gold $746.50 12.30
News Today
* DOW closed in red as concerns turn back to the slowing economy.
* GM shares hit a 6-decade low, Auto maker is suffering lack of funds and the stock was downgraded by major brokerages.
* Continued contraction forecast in 2009 for Japanese, U.S , British and eurozone economies. Blue Chip Economic Indicators predicts current recession will be deeper, longer than 2001 or 1990-91.
* AIG gets $150 bn govt bailout; posts huge loss of $24 billion.
* Australian business confidence at record low, the economy is facing tough times.
* Indian realty developers are taking the brunt of the slow down , DLF mega mall on hold as rentals slip.
MarketS DailY - Nov 10
US INDICES
Index Level Change(pts) Change(%)
Dow Jones 8943.81 248.02 2.85
Nasdaq 1647.40 38.70 2.41
ASIAN INDICES AT 9 AM
Nikkei 9053.90 470.90 5.49
Hang Seng 14689.98 446.55 3.14
Kospi Index 1139.50 5.01 0.44
Straits Times 1862.19 -1.30 -0.07
EUROPEAN INDICES
FTSE 100 4364.96 92.55 2.17
CAC 40 Index 3469.12 81.87 2.42
Dax Index 4938.46 124.89 2.59
SGX NIFTY 3055 +37 points
Crude Oil
Index Level Change(pts) Change(%)
Dow Jones 8943.81 248.02 2.85
Nasdaq 1647.40 38.70 2.41
ASIAN INDICES AT 9 AM
Nikkei 9053.90 470.90 5.49
Hang Seng 14689.98 446.55 3.14
Kospi Index 1139.50 5.01 0.44
Straits Times 1862.19 -1.30 -0.07
EUROPEAN INDICES
FTSE 100 4364.96 92.55 2.17
CAC 40 Index 3469.12 81.87 2.42
Dax Index 4938.46 124.89 2.59
SGX NIFTY 3055 +37 points
Crude Oil
$64.01
+4.87%+$2.97Gold
$749.00
+2.02%+$14.80News Today :
* China announces $ 586 billion stimulus package to boost up the economy . Shanghai markets up nearly 5% in early trade.
* Asian Markets rally taking cues from chinese markets.
* US unemployment rate hits 6.5%, evident signs of a painful recession.
* Berkshire hathway posts a 77% drop in net profits this quarter. Automakers Ford, General Motors and Chrysler, ask for a financial lifeline after suffering from huge losses.
* US Treasury Department and the Federal Reserve were near a deal to invest an additional $40 billion in AIG.
* China's wholesale inflation falls to 6.6% in October.
| 2008* IN THE EMERGING MARKETS Best-performing markets | |
| Chile's IPSA index | -18% |
| South Africa's All Share index | -28% |
| Mexico's IPC index | -30% |
| Worst-performing markets | |
| China's Shanghai Composite index | -67% |
| Russia's RTS index | -65% |
| Indonesia's JSX Composite index | -54% |
* as of Nov. 3
Events in US markets this week - Nov 10- Nov 14
On Tuesday, the NFIB's small business survey is released.
On Thursday, weekly jobless claims are released, as is international trade data.
On Friday,retail sales for October , import prices for October, business inventories for September and consumer sentiment are released.
Fed Chairman Ben Bernanke is scheduled to speak Friday at the Fifth European Central Bank Banking Conference on policy coordination among central banks.
On Thursday, weekly jobless claims are released, as is international trade data.
On Friday,retail sales for October , import prices for October, business inventories for September and consumer sentiment are released.
Fed Chairman Ben Bernanke is scheduled to speak Friday at the Fifth European Central Bank Banking Conference on policy coordination among central banks.
MarketS DailY - Nov 07
US Markets:
Dow
Nasdaq S.&P. 500
Asia at 9 AM
Japan Nikkei 8,536.41 -362.73 -4.08%
Hong Kong Hang Seng 13,561.64 -228.40 -1.54%
China Shanghai 1,719.19 +0.09% +1.47
Crude Oil
Gold
News Today:
* Wall street Welcomes Obama, DOW slips nearly 1000 points in 2 days. He is busy assembling his economic team comprising Buffett, Volcker, Rubin.
* IMF forecasts a Global recession in 2009, Slashes Indias growth expectations from 6.9% to 6.1%.
* Cisco slashes guidance, cautious on future outlook.
* US Jobless claims reach 481,000.
* Auto Makers are under immense pressure, Toyota cuts global vehicle-sales target by 5.7%, projects annual operating profit will drop 68%. GM, Ford expected to report big losses.
* ECB cuts interest rates by 50 bps, BOE cuts rates by 150 bps one of the biggest rate cuts in recent history.
* Bank of Korea cuts interest rate a quarter-point to 4%
* China's economy which was a fuel to global growth is now showing signs of rapid deceleration.
* India doing better than other economies: JP Morgan
* Oil slips below $60 in intra trade.
* US to cut IT spend by 5% in 2009 says Goldman Sachs, No sweet news for IT sector.
Dow
Nasdaq S.&P. 500
Asia at 9 AM
Japan Nikkei 8,536.41 -362.73 -4.08%
Hong Kong Hang Seng 13,561.64 -228.40 -1.54%
China Shanghai 1,719.19 +0.09% +1.47
Crude Oil
$61.01
+0.39%+$0.24Gold
$731.60
–0.08%–$0.60News Today:
* Wall street Welcomes Obama, DOW slips nearly 1000 points in 2 days. He is busy assembling his economic team comprising Buffett, Volcker, Rubin.
* IMF forecasts a Global recession in 2009, Slashes Indias growth expectations from 6.9% to 6.1%.
* Cisco slashes guidance, cautious on future outlook.
* US Jobless claims reach 481,000.
* Auto Makers are under immense pressure, Toyota cuts global vehicle-sales target by 5.7%, projects annual operating profit will drop 68%. GM, Ford expected to report big losses.
* ECB cuts interest rates by 50 bps, BOE cuts rates by 150 bps one of the biggest rate cuts in recent history.
* Bank of Korea cuts interest rate a quarter-point to 4%
* China's economy which was a fuel to global growth is now showing signs of rapid deceleration.
* India doing better than other economies: JP Morgan
* Oil slips below $60 in intra trade.
* US to cut IT spend by 5% in 2009 says Goldman Sachs, No sweet news for IT sector.
MarketS DailY - Oct 06
US Markets:
Dow Nasdaq
S.&P. 500
Asia at 10 AM
Japan Nikkei 8,978.24 -543.00 -5.70%
Hong Kong Hang Seng 13,903.36 -936.80 -6.31%
China Shanghai 1,716.63 –2.50% –43.98
Crude Oil $64.54 –1.16% –$0.76
Gold $737.60 –0.65% –$4.80
News Today:
* Election rally Fizzles out in US, DOW sheds nearly 500 points.
* Jobs will be first priority to Obama, Unemployment rates are expected to hit multi decade highs next year.
* Markets around the world will be watching obama as to who he picks as his team to weather the financial crisis. Treasury secretary post will be the most important of all.
* Shangai index hits a new 1 year low.
* Tata motors announce 3 day factory closure to cut down production.
* Arcelor Mittal the worlds largest steel maker posted a bad set of results, announce cutting down of production up to 30% next quarter.
* Inflation expected to come at 10.45%.
* Indian banks say they dont have sufficient funds to cut down interest rates and express concern over lending to realty sector on fear of high real estate prices and concerns of defaults.
Dow Nasdaq
S.&P. 500
Asia at 10 AM
Japan Nikkei 8,978.24 -543.00 -5.70%
Hong Kong Hang Seng 13,903.36 -936.80 -6.31%
China Shanghai 1,716.63 –2.50% –43.98
Crude Oil $64.54 –1.16% –$0.76
Gold $737.60 –0.65% –$4.80
News Today:
* Election rally Fizzles out in US, DOW sheds nearly 500 points.
* Jobs will be first priority to Obama, Unemployment rates are expected to hit multi decade highs next year.
* Markets around the world will be watching obama as to who he picks as his team to weather the financial crisis. Treasury secretary post will be the most important of all.
* Shangai index hits a new 1 year low.
* Tata motors announce 3 day factory closure to cut down production.
* Arcelor Mittal the worlds largest steel maker posted a bad set of results, announce cutting down of production up to 30% next quarter.
* Inflation expected to come at 10.45%.
* Indian banks say they dont have sufficient funds to cut down interest rates and express concern over lending to realty sector on fear of high real estate prices and concerns of defaults.
MarketS DailY - Nov 05
US Markets:
Dow Nasdaq
S.&P. 500
Asia at 9 AM
Japan Nikkei 9,428.53 +313.93 +3.44%
Hong Kong Hang Seng 15,140.62 +756.28 +5.26%
China Shanghai 1,778.65 +4.22% +71.95
Crude Oil $68.90 –2.31% -$1.63
Gold $759.70 +0.32% +$2.40
News Today:
* Barack Obaman wins US presidential elections to become the first black american president.
* Wall Street had its largest Election Day rally in 24 years
* Japans october car sales fally to 40 year low.
* Rupee posted biggest single-day gain since 1998 yesterday
* Global slow down creeps in. West cutting jobs and Asia cutting down pay's.
* Indias IT body NASSCOM says slow down in the sector to continue for 15 months.
Dow Nasdaq
S.&P. 500
Asia at 9 AM
Japan Nikkei 9,428.53 +313.93 +3.44%
Hong Kong Hang Seng 15,140.62 +756.28 +5.26%
China Shanghai 1,778.65 +4.22% +71.95
Crude Oil $68.90 –2.31% -$1.63
Gold $759.70 +0.32% +$2.40
News Today:
* Barack Obaman wins US presidential elections to become the first black american president.
* Wall Street had its largest Election Day rally in 24 years
* Japans october car sales fally to 40 year low.
* Rupee posted biggest single-day gain since 1998 yesterday
* Global slow down creeps in. West cutting jobs and Asia cutting down pay's.
* Indias IT body NASSCOM says slow down in the sector to continue for 15 months.
MarketS DailY - Nov 04
US Markets:
Dow
Nasdaq
S.&P. 500
Asia at 9 AM
Japan Nikkei 8,894.71 +317.73 +3.70%
Hong Kong Hang Seng 14,032.16 -312.21 -2.24%
China Shanghai 1,691.27 –2.61% –45.25
SGXNifty 3070 +8
Crude Oil $63.30 –0.95% –$0.61
Gold $726.90 +0.01% +$0.10
News Today:
* US election day today, Markets ended calm waiting for the results of the elections.
* US auto sales at 25 year low.
* US ISM index showed a severe contraction in the manufacturing sector.
* Australia cuts key interest rate 0.75 point to 5.25%.
* India's PM asks India Inc captains to avoid job lay offs.
* CLSA's Chris Wood says S&P 500 can pull back upto 1200 levels.
Dow
Nasdaq
S.&P. 500
Asia at 9 AM
Japan Nikkei 8,894.71 +317.73 +3.70%
Hong Kong Hang Seng 14,032.16 -312.21 -2.24%
China Shanghai 1,691.27 –2.61% –45.25
SGXNifty 3070 +8
Crude Oil $63.30 –0.95% –$0.61
Gold $726.90 +0.01% +$0.10
News Today:
* US election day today, Markets ended calm waiting for the results of the elections.
* US auto sales at 25 year low.
* US ISM index showed a severe contraction in the manufacturing sector.
* Australia cuts key interest rate 0.75 point to 5.25%.
* India's PM asks India Inc captains to avoid job lay offs.
* CLSA's Chris Wood says S&P 500 can pull back upto 1200 levels.
Events in US Markets for the week Nov 03 - Nov 07
Monday - ISM manufacturing data ,construction spending.
Factory orders are reported on Tuesday.
ADP's employment report is released on Wednesday.
Thursday, weekly jobless claims are reported.
The European Central Bank and Bank of England hold rates meetings on Thursday. rate cuts expected
Employment situation, Wholesale trade, consumer credit and pending home sales for September are reported Friday.
Results of some biggies like Cisco, Walt Disney and Berkshire also slated for this week.
Factory orders are reported on Tuesday.
ADP's employment report is released on Wednesday.
Thursday, weekly jobless claims are reported.
The European Central Bank and Bank of England hold rates meetings on Thursday. rate cuts expected
Employment situation, Wholesale trade, consumer credit and pending home sales for September are reported Friday.
Results of some biggies like Cisco, Walt Disney and Berkshire also slated for this week.
MarketS DailY - Nov 03
US Markets:
Dow Nasdaq
S.&P. 500
Asia at 9 AM
Hong Kong Hang Seng 14,569.31 +600.64 +4.30%
China Shanghai 1,742.59 +0.80% +13.81
SGXNifty 3050 +150
Crude Oil $68.50 +1.02% +$0.69
Gold $732.70 +2.02% +$14.50
News Today:
* RBI cuts CRR by 100 bps and repo rate by 50 bps.
* US Treasury rejects General Motors call for help to merge with Chrysler.
* UK prime minister Gordon brown calls for Gulf countries to participate in the rescue measures to help revive the world economy.
* South Korea unveils $11 billion stimulus package.
* CLSA survey says china's manufacturing conditions are at a record low.
* PM Manmohan singh to meet India Inc chiefs today to assess the global meltdown and its impact on industry at home.
Dow Nasdaq
S.&P. 500
Asia at 9 AM
Hong Kong Hang Seng 14,569.31 +600.64 +4.30%
China Shanghai 1,742.59 +0.80% +13.81
SGXNifty 3050 +150
Crude Oil $68.50 +1.02% +$0.69
Gold $732.70 +2.02% +$14.50
News Today:
* RBI cuts CRR by 100 bps and repo rate by 50 bps.
* US Treasury rejects General Motors call for help to merge with Chrysler.
* UK prime minister Gordon brown calls for Gulf countries to participate in the rescue measures to help revive the world economy.
* South Korea unveils $11 billion stimulus package.
* CLSA survey says china's manufacturing conditions are at a record low.
* PM Manmohan singh to meet India Inc chiefs today to assess the global meltdown and its impact on industry at home.
