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Week ended 11/19/2010 -- Markets this week .

First, let see markets this week ---
 
IndexWeek ended Nov19       (%)Week ended Nov 12
GOLD1353-1.10%-1.90%
DOW112030.10%-2%
LONDON5732-1.10%-1.30%
BRAZIL708970.75%-3%
JAPAN100223.06%1%
INDONESIA37251.64%0.30%
CHINA3025-3.26%-4.60%
INDIA19585-2.83%-4%


People Bank of China said their reserve ratio would go up in 29th November by 0.5%. This is to control the inflation ( better to read as food inflation )  which hits a 2 years high 4.4%  last week. This will be 5th time in this year & 2nd in this month.
But  the question will be,   Is it all?    Can we see any other act in coming weeks or days ?




GM’s $20.1 billion IPO  will not only enable the company to reduce govt’s debt burden  but also shows a little bit turnaround of American auto industry. But I think all that will be matter are the accounting  figures  &  still there is govt debt that has to be repaid in future.
Coming week’s data for American market is quite important  especially existing home sales & jobless claim data i.e.
Irish govt  is deciding in a meeting in Sunday to cut it’s budgetary deficit  which is almost more than 30% of it’s GDP. Well this step  will  be good for it’s economy but certainly this time still  the important issue is it’s debt problem. The pressure from outside is big to take the rescue package.



Japanese market is little bit immune from the big corrections that happen in market like Chinese & Indian, few days ago. So it will be interesting to see the Japanese market in coming days, especially when YEN is again depreciating from it’s high.
This week Gold price was trying to break the $1360/ounce  level but it fails to close above that. This may be due to many causes such as Profit taking, Chinese  rate problem. It seems to me that we may not see a big up move in coming days unless these matters are solved.   Nymex crude December delivery declined to almost 4% quite big.
In India realty sector is corrected much  with Infra, but  I.T. & Banking sector  are not much corrected  but latter half of the week banking sector  is  also effected.
In coming days the Telecom  scandal  may can  determine the way the market will move. It’s a huge amount, that we cannot forget & names of some big companies are attached with it. The reaction we  have seen in  this week’s stock prices.
From the short-time prospect, Chinese & Indian markets are looking more cheap than other peers. But these two countries have to face two of their own missile - rate increase for one  &  telecom scandal for other.  And we cannot forget the fact that we haven’t seen any big correction in Indian market yet !


NOTE :  Please see the disclaimer below this blog .

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