ECB raises interest rate by 0.25% this week , as such this was long due . Everyone of us expecting that . Though
Portugal is in trouble but it is good that is in better condition though their unemployment number roses as their service sector is lagging in this matter . In spite of rate hike by ECB and Spain , this week markets were quite ok . China
Hang Seng like other indexes see some quick up side movement , as chart pattern indicates it very well .
Malaysian KLSE breaks the trend for an up move . It gets minor resistance at 1560 but in this moment it looks like it may cross that level for higher move , unless some corrections happen around us .
China increase the fuel price this week and some experts feel that it needs to increase it more in coming days . A weak US$ makes commodity prices cheaper for others who are holding other currencies . Copper Price can go more in the upside from here as it looks like in the chart .
From last few weeks I was expecting Oil to break this 107 level . This week it’s move was quite extraordinary , it was a quick up move especially in the last day .
I am expecting some more moves from here , may be little bit correction we can see but it needs to be look at that whether it beats the 107 level or not . If the political situations becomes more problematic then it will go more and more in the up side . Brent Crude top more than 126 .
Due to high oil price and inflation concern Gold & Silver future were up . Gold is lacking momentum when comparing to Silver . Silver was as high as 40.96 .
I was expecting some up move in Gold if it able to break that 1440 level . This week Gold just reflects my prediction . If I am not wrong we may see Gold touching 1490 level from here in coming days .
DAX is facing some resistance at around 7200 level , if market remains bad it may retest the low of 6900 level . On the upside it can reach at 7400 level if it crosses the 7300 level .
5000 is the target for Australian index in coming days but I will be looking for some correction in coming week .
9100 level is a good resistance for Thai index but first it needs to cross 8900 level which is acting as minor resistance .
This week’s move for Shanghai Composite was very encouraging as I was expecting that it is going to cause the 3000 level . In the up side it may face some resistance at 3050 if it crosses that it can easily reach to 3150 level .
Reports due this week –
Tuesday, 12 April ,2011 – US Trade gap
Wednesday,13 April , 2011 – Retail Sales
Thursday, 14 April , 2011 – Unemployment Claim , Producer Price Index
Friday, 15 April , 2011 – Consumer Price Index , Industrial Production , Consumer Sentiment .
According to United nation’s FAO , global food prices are decreasing after nearly 8 months but they also warned about the rebound of the prices . I think when oil price is not decreasing as also no improvement in political situations it is hard to expect much decline in food prices .
When situation around us is problematic investor are going safer options and dollar rises , but when there is less problem investors are going into riskier assets like Stock , Oil and Euro . This is the basic trend of the financial market in recent time . But this rule is not followed in case of US stocks as these are rising even when US was in trouble , US$ was in trouble & even when most markets are going in the phases of corrections . I think there is some problem with these stocks . one day these are going to cost the investors and traders .
Whatever the employment reports say , I will not understand those unless the recovery picks up speed . The most important thing is unless the interest rates increase . I do not think there is any sign of that in near future .
As we cannot forget that banks are still going down in US as 2 more banks were shut down by
regulator . Now the number increases to 28 in this year of 2011 . This shows the real picture . US
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