This week started with Korean tension but later situation improved and fears eased with the news of North Korean permission of nuclear inspectors.
Week ended Dec24
Week ended Dec17 (%)
As I told in my previous writings that Chinese govt. may be helping the Euro countries to protect its own Euro reserve, this week they again offered their support to Euro-zone countries.
Two important news came from
, one is they are purchasing less foreign currency and other is control of cars in the city. These two news are going to make lot of noises in coming days in china. China
Some experts believe that Chinese trade surplus may be under pressure in future as govt. is buying more goods from outside the country where as some govt. report says that next year foreign trade will grow 10% from 30% this year. Now it is a matter to look how Chinese govt. handle the situation.
S&P lowered the rating of
’s local and foreign currency and raised doubt about it’s banking system. It also warned that if financial stability weaken further it may lower Vietnam ’s credit ratings. Concern about state run Vinashin’s debt default is an important news now in Vietnam as it’s debt was overdue this week. Vietnam
As I was writing in my previous weekly review that if Oil cross 88.50 we may see a run there.
Looking at the chart, I think it is working on a channel. And if other things go in positive way we may see more up movement in coming week. May be the words of Venezuelan minister is reflecting in oil’s movement.
IMF said it concluded it’s sale of 13% gold reserve to increase it’s finances and lend at reduce rates to low income countries. Previously I told that time will prove whether these countries like India, Sri Lanka are going to make profit by buying gold in this price !
Looking at the gold chart I some time think that if gold does not breach this 1380-1385 level then we can see an up move here in spite of the fact that it is making head & shoulder pattern.
World 3rd largest copper mine company Collahuasi in
, halted it’s shipment because of an accident. It is not cleared when they are going to resume Copper shipment. This news helps to send the price of copper future at a record close at $4.8. Chile
Mining companies were making gains in
after news of a good proposal of mining tax came. Australia
Though some of the indicators showing Dow Jones is overbought but looking at it’s move it looks to me in new year it may move more in the upside. 69800 level is very crucial for Brazilian Bovespa, if it breaks this level after the holiday season then it may test it’s November high.
But until the new year comes it may retest its recent low in coming week .Brazilian market is yet to face any big correction. As I was telling in my last review that
composite may be going lower, still again this week looking at the chart I am in the same view. I think it may retest its recent low 2750. T-SEC is very much overbought as indicators are saying but it may cross the 9000 level to test the may 2008 level. If this would not been a holiday season CAC could easily cross it’s may 2010 high in this week. Shanghai
Aussie dollar close this week above 1, and coming days it may carry on this move.
Like this week in coming week volume will be less and market will be slow, so unless new year comes we may see this type of market. Coming week important reports like consumer confidence data, unemployment claims and pending home sales are due. European economic problem and Chinese rate cut will still contribute to the down side of the market. Chinese govt. may again increase their reserve ratio in next year if not the rate increase.Wish all of you Merry Christmas.
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