It's Friday morning and its a quite morning across global market, it’s pouring in Bombay. Not much in the financial market, they are resting after that big party but something’s are happening around it.
Markets this week:
I think it maybe a quite kind of closing not give up too much of ground, not move forward by too much. You need a couple of days to recover from a big party.
Yesterday we did not do anything but did not give too much of ground and even if we give a little bit of some ground it’s fine. We had 650 point break out after that couple of hundred points here and there doesn’t matter so much.
I think our run for this week is done, it was such a big party that we would be very surprised if something dramatic happens today we could give a little bit of ground sure we could but I don’t think will scare anybody.
People are generally bullish and the market seeming fairly bullish small corrections here and there we seem to be in a fairly good frame of mind here.
Asian Indices
It’s a quiet morning across Asia. The Nikkei is down a bit China is down 0.5% Straits Times down 0.5% Kosbi is absolutely flat actually Hang Seng’s down 0.25% and some markets like Taiwan have moved up a bit. So it’s a mixed bag and very quiet out there, still on rest mode.
Global cues
We had a good break out across markets and markets are just sort off cooling off a little bit most them are at new highs or getting very close to new highs. A little bit of a pause is entirely understandable.
People will now make out a lot or make a lot of what Ben Bernanke has said overnight but the Fed says lots of things. Two days back he’s cutting rates now he is saying the mortgage problem is not over. It’s a funny situation out there.
The bottomline is whenever things get worse the Fed will cut rates that’s a basic given on which or premise on which you should work because that’s what the Fed does.
Whatever it says in the interim has no meaning. It will say good things it will say bad things. When it comes to the crunch it will pump more money into the global system because that’s what it does habitually.
The big bank numbers have also come through from the US they are a bit of mixed bag Lehman were Goldman were good and Morgan and Bear Stearns were not so hot. So it’s a mixed bag you don’t know what to take away from it.
It’s a little bit of a yen-dollar fluttering around there because yen has come back to around 114.5, so you need to watch that for short-term gyrations but generally there is nothing which should destabilize the markets now.
We are just on rest mode having really jumped quite a bit in the last couple of days that might continue for a bit longer.
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