Australian PM announced a new tax for helping in flood affected areas. Chinese Govt. announced property tax for controlling house price and inflation. Where as South Korean economic growth slows in last quarter of last year. In
, Govt. came into an understanding with labor unions for increasing the retirement age. Spain
Last day it was the Egyptian unrest that made many market to fall, like US market which in spite of good GDP number fall from it’s 29 month highs. On the other side due to rate hike problem, Indian markets have suffered huge losses. In spite of this rate hike tension Indonesian market worked quite well.
As better economic news were coming investors were shifting from safer assets to riskier assets but on the last day, the unrest in
made lot of problem in this equation. Egypt
Copper surges on better news from US and other parts of the world.
Last day oil makes a higher move. Otherwise oil was correcting lot by breaking it’s support at 89.
Egyptian problem make lot of speculation about the oil because there was a tension that this unrest can move in other parts of the region and that can make problem with oil production and supply. So in coming week, there is a chance of more up movement in oil price from here.
Gold is making an long term correction as people are shifting into riskier assets.But investor started buying gold as the Egyptian news came. Other wise during this week people were selling gold as there were some news that in
there is a chance of rise in interest rate. So it is quite natural people will select those high fixed rate interest instruments than gold. USA
Same story also for US Treasuries.
Long-term treasury yields are not decreasing much where as short-term yields are decreasing this is also a good signal about the recovery of the economy.
and many other currencies made gains this week on optimism of economical growth which will bring more foreign investments in these countries. Philippines
Euro still couldn’t close above the 1.38 figure in fact last day it reduces much may be due to crisis in the gulf when everyone are trying to take shelter under US dollar.
Australian index couldn’t able to close above 4800 level, for any up move from here it needs to close above that. On the downside it faces support at 4700 level.
Dowjones faced a correction in last day and it closes 11800 level where it’s important support exists. In this moment beating 13000 level looks far.
FTSE can face some more correction in coming week. 5850 level is crucial for it, if it breaks this it can easily go below 5800. on the up side it is 5950.
Looking at the previous week’s close I expected correction in KOSPI but it did not , in fact it again moving upward direction. It is facing resistance at 2120 level.
Russian market coulnot able to go for test the crucial 7220 level. as I was talking about the correction in previous week, it is really due for it.
31500 level is very important for South African market in the downside, on the upside it is 32500. In January it has corrected to some extent but may be in future we can see another wave of correction on it.
look like the index gets support at 960 than 990 as I was telling last week. Though last day’s figure was not good but it can make an up move from here. Thailand
Bovespa closed below its crucial support of 67000 this week. Next good support is at 65000 though before that it has to face some support at 66000. Things are following in such a fashion in some of the Emerging countries if it goes more down from here then I will not astonished.
For shanghai composite crucial support was at 2700 it gave close above that mark in fact it looks to me it is bouncing from this level unless something bad happen in coming week it will likely to carry it’s move.
Here I want to give a look on the movement of the Emerging market indexes in January-2011.
In spite of pressure of rate hike Indonesian market not faced lot of correction like others. Where as
and South African markets face some pressure in January 2011, but it is the Indian market that face huge correction in this year. Actually it was long due. Thailand
But all this correction that is going on Indian market making it cheaper among it’s peers. As such coming days will be good time for buy in Indian market especially those realty and infra stocks which are corrected more than the main index.
Next week consumer spending data , auto sales , unemployment reports, factory orders , job-reports and monthly job report e.t.c are due from US market. Though rate has been hiked in
but in some other countries it is still due. In February there is also some bond selling due from India Europe. New growing political incidents and inflation these may effect coming week’s markets.
NOTE : Please see the disclaimer below this blog.