We shall start the day with some good news.To have a clear understanding about today's article I advise you to read my previous article on Global Sell-off , before reading this.
Lucas Papademos(Former European Central Bank vice-president) has been named as Greece's new prime minister.He is not the member of the parliament and he would be heading an interim Government until the elections on February 2012.The formal swearing in ceremony to take place today.In Italy,Mario Monti is likely to replace Silvio Berlusconi.The effective interest rates in Italy came down below 7%(The reason for the big sell off on Wednesday was due to the Bond yields which was trading above 7%) after the expectations that Monti may replace the present PM. And in another good news, S&P says France's rating remains AAA with a stable outlook(On Monday, France announced an austerity package which would save €7 billion in 2012). Yesterday,Italy's bond auction successfully raised €5 billion.According to some traders from Europe,ECB was seen buying Italian bonds on 2 and 3 year maturities for significant amounts. Italian markets ended up by a percentage and all the European indices ended almost flat contrary to the Wednesday sell-off (Read my previous article on Global Sell-off).
In the US, jobless claims fell to a seven month's low and the DJIA ended up by almost a percentage.
Isle of Man loses S&P AAA rating.S&P in a statement said, "We consider external vulnerabilities and the lack of monetary flexibility as credit weaknesses for the Isle of Man".
China's foreign trade rose in October by 21.6% YoY but was 8.3% lower when compared to the month of September.And the exports rose by 15.9% in October YOY and was lower by 7.2% MoM. Daiwa Capital Markets Economist Kevin Lai on Bloomberg says, Hong Kong is already in recession.
Investment Veteran,Jim Rogers says, he is 100% sure the world will face another financial crash .He warned that ,"It was bad in 2002,was worse in 2008 and in 2012 or 2013 is going to be worse still-be careful."
And in a new survey by WSJ, Economists says, 66% Chance that the Euro Zone Will Fall Into Recession.Today the IMF's Deputy MD,David Lipton arrives in Rome to begin fiscal monitoring and € 2 Billion worth of Greek T-Bills mature today.As if this is not enough, a strong,shallow earth quake of Magnitude 5.2 hit Greece at 19.25 local time.A report suggests that the damages are minor.
Asian Markets are trading almost flat for the day.Bank of Korea leaves the base rate unchanged at 3.25%. The finance Ministry says they need a balance between growth and inflation.The Kospi is trading up by a percentage at 07:50 AM IST.
SGX Nifty is trading flat at 5166 at 07:50 AM IST.
FTSE futures is trading up by 30 pts and DOW futures is trading up by 13 pts at 07:50 AM IST.
Today, the European Indices may give a thumbs-up to the news of France retaining its AAA rating.
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