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Showing posts from November, 2011

Stock market reviews (weekly) after 25th November, 2011.

Belgium, Hungary, Egypt, Portugal, France, Japan all were becoming the pray of rating agencies. Rating change and threat of rating change of these countries made a new kind of tension in stock markets around the world. Markets were also damaged by the ongoing Euro-zone debt fever. Some of the Emerging markets are facing 4th consecutive negative week.
INDEX 25-Nov,2011 11/18/2011-11/25/2011 (%) 11/11/2011-11/18/2011 (%)

DOW 11231 -4.78 -2.93 FTSE 5164.65 -3.69 -3.28 CAC 2856.97 -4.67 -4.83 DAX 5492.87 -5.29 -4.23 NIKKEI 8160.01

Currency market review (weekly) after 25th November, 2011.

This week EURO touched a 7 week low against the US$.The cost of swapping EURO funds into US$ rose to highest level (like Lehman brothers time in end of 2008), which is not a good sign for financial market. Many experts are saying that this is the good time to exit EURO on each rally. EURO dropped for 4th consecutive week, what I think that if in coming days Bond yields increase in this fashion then we can see more drops in EURO. USD gained this week because investors were taking shelter in US Treasuries, one of the important causes is the failure to reach an agreement on US deficit cut. CURRENCY  ( $ ) 25-Nov,2011 11/18/2011-11/25/2011 (%) 11/11/2011-11/18/2011 (%)

USD 79.686 2.13 1.4 EURO 1.324 -2.07 -1.67 AUD 0.971 -2.99 -2.53 YEN 77.68 1.01 -0.22 RUPEE

Treasury & Bond market review (weekly), after 25th November, 2011.

If not S&P, there are others like Moody’s who can downgrade. It cut Hungary’s credit rating because of higher debt level and weak growth forecast. Hungary’s weaker currency is one of the causes of its rising debt. Now it will be very interesting to look, how they approach the matter with IMF and EU. Many must be looking whether Hungary change their banking policies. There was not much to say about US, as many were sure about the outcomes from congressional committee. US Treasury market face some sell-off in the last day of the week, otherwise market was flat this week.
Yields (USA) 25-Nov,2011 11/18/2011-11/25/2011 (%) 11/11/2011-11/18/2011 (%)

2-Year Treasury 0.275 -2.48 24.77 5-Year Treasury 0.933 1.85 1.21 10-Year Treasury 1.964 -1.94 -2.38 30-Year Treasury 2.921 -2.43 -3.66
Many were surprised by the Germany’s failure to get bid for Bonds; everyone is telling that if the strongest nation faces this difficulty then what about others! Spain’s new popular party failed to do any miracle to re…

Future of FTSE, as on 23rd November, 2011?

NOTE :  Please see the disclaimer of this blog .

Weekly Stock market reviews after 18th November, 2011.

At past I was suspecting that debt problem can cross the Atlantic, no it is not yet !  But little infection does? US financial stocks were under pressure during some time, now gradually we are getting some news about their attachment with problematic countries. Though they have not cleared it to shareholders but it is true that they (JPMorgan & Goldman Sachs ?) have sold protection on debts, now it will be very interesting to see how much of them belongs to the problematic Euro countries. Here we can refresh our memory by 2008 Lehman Brothers collapse. I am not saying they are going to collapse like Lehman, but I will be looking in future to see how they tackle the situation. We should not forget that in case of CDs many parties are related with each other, so if anyone suffers the pain then others also will be due for that.
INDEX 18-Nov,2011 11/11/2011-11/18/2011 (%) 11/4/2011-11/11/2011 (%)

DOW 11796 -2.93 1.41 FTSE 5362.94 -3.28 0.32 CAC 2997.01 -4.83 0.82 DAX 5800.24 -4.23 1.39 NIKKEI 8374.91 -1.63 -…