The Oil Marketing Companies have reduced the price of petrol by Rs.1.85 per liter before VAT.This is a surprise as it comes at a time when Rupee hits 32 month low against the Dollar. Meanwhile the Oil companies hiked the jet fuel (ATF) prices by 2 per cent.These price changes comes into effect from today.The Italian 10 year bond yields moved up again above the critical 7% mark driving the European indices into deep red. FTSE was trading down by 1.5% at one point of time.The Spanish and French bond yields surged too.The Euro zone's Economy grew merely by 0.2%. According to a source, talks on 50% cuts in Greek bonds to begin at Frankfurt today. Greece Finance Minister says,new Government To Fully Implement Oct 27 Agreement.
As I had written in my previous article,US retail sales surprised the Markets positively.The retail sales came at 0.5%. Our sources attribute the increase in core retail sales to the recent launch of iphone.Wal-Mart's profits misses analyst's forecast.Net income dropped 2.9%.Dell's revenue falls in the third quarter and Autodesk posted a better than expected results.Finally the US markets ended in green.Dow ended flat, S&P ended half a percent up and NASDAQ was up by a percentage.
Australia's third quarter Manufacturing Index Falls To -0.9 Vs +0.2 in the second quarter.
IMF warns that the biggest Chinese commercial banks face systemic risks if a combination of credit, property, currency and yield curve shocks occur together
Events to Watch- Portuguese T-bill auction, China rates in focus today( Nomura's Chinese Economist says ,China will not cut the rates).In Italy, Monti to meet the President today at 1000 GMT,(around 3.30PM IST) .He is expected to announce a cabinet comprising mostly of technocrats.Chancellor Merkel speaks at 1300 GMT.Other events to watch , Euro Zone CPI , UK Labour Market data , US Industrial production.
SGX is trading at 5050 (07.35 AM IST). I expect a better UK Labour Market data and a decent US industrial production data.If the data comes better than the expectation, we may see a bounce back in Global indices.Avoid carrying Over-night short positions.
Market Facts- Have you ever thought why are Italy's funding costs higher than those of the UK?
The Answer is ,UK can print its own currency :)
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