World Markets

In Europe, Mario Monti sworn in as Italian PM and he forms a cabinet of technocrats.FTSE showed huge volatility as Vodafone was trading Ex-Dividend and was pulling the index down.Though the UK unemployment rate rose again in October , the index was down merely by 8 points showing resilience.In Greece, Papademos wins the confidence vote.Greek finance minister says the new Government has to do everything needed to receive 6th tranche, and wages and pensions will be fully paid.French and Spanish yields were trading higher, yesterday. Spanish and French bond auctions to happen today.Spain's Treasury to issue up to €4Bn in new 10year bond.This is going to be keenly watched in the Europe.I expect the yield to surge and eventually it would drag the European indices further down.

Industrial production in US advanced more than the analyst expectation.It came at 0.7 % compared to a 0.1% drop(revised) in September.All the good news from the US indicates that the economy is improving.And the rating agency FITCH announced , the Euro Zone contagion poses threat to the US banking outlook.This pushed the markets down and all the indices were down by more than a percent and a half.

Singapore Dollar may trade lower for the day as the October exports were down by 16.2% compared to the expectation of ten Economists in a DJ poll.(Expected drop-8.1%)


Oil price hits $100, first time since July.And our sources from Europe say that , Israel may launch an attack on IRAN(With the support of UK,Italy,Germany and the logistical support from the US) anytime sooner before Christmas or Before the the New year.Two days back in my article I wrote that, France is not considering military action against Iran.If Iran is attacked, oil prices would spiral northwards.Oil traders are advised to stay cautious.

Events to Watch

UK retail sales- Analysts are expecting a slow down.

US Jobless claims - After a good set of economic data from the US in recent time, I expect a better number this time.

Spanish and French Bond Auction- If the yields surge, it may bring the markets down on its knees.


FTSE futures down by 60 points at 08.15AM IST

DOW futures down by 15 points at 08.15AM IST.

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