JAI MATA di
$sabse bada rupaiya
MARKET SUMMARY & DAY
FORWARD
DATE: 3rd
SEPTEMBER 2010.
We have started giving commodity calls in
crude, Gold & silver.
ABOUT
AMERICAN ECONOMY & markets:
Friday's jobs report
is expected it to be pivotal not only for stock and bond investors but for the
Federal Reserve, which is weighing whether to take further steps to boost the
struggling US economy. A negative number would obviously be bad news, and if
private payrolls rise as expected, "it's still somewhat
disappointing," said Jeff Kleintop, chief market strategist at LPL
Financial. A positive private sector number, however, won't guarantee a market
rally, Kleintop said. That's because if the number comes in at, say, 100,000
jobs, the market ends up in a Catch-22: a number too small to signal a true
economic recovery, but too big to justify the Federal Reserve stepping in to
stimulate the economy, as many market participants hope, he said. "It might
be bad news no matter what the data is tomorrow," Kleintop said. Several
economic reports brought good news to investors on Thursday causing stocks to
close higher for a third session.
The
Dow gained 50.63 points. The S&P 500 rose by 9.81 points and the NASDAQ
rose by 23.17 points.
The weak labor market threatens to derail the economy's recovery from the most painful recession since the Great Depression. Growth is losing steam as the boost from an $814 billion government stimulus package and the rebuilding of inventories by businesses fade. The Fed has acknowledged the slowing recovery pace and minutes of the U.S. central bank's last policy meeting released this week showed the economy's outlook would have to deteriorate "appreciably" to spur fresh support from the Fed. The White House stressed on Thursday that no second economic stimulus package is being considered as part of new measures under review by President Barack Obama's team.
Even if
the US and European economies manage to avoid a double dip, it will still feel
like a recession, while more than half of the 800-plus US banks on the
"critical list" are likely to go bust, according to renowned
economist Nouriel Roubini of Roubini Global Economics. In the second half,
fiscal policy becomes a headwind, no more cash for clunkers," Roubini
said. "The positive scenario is that growth will be below par. News Corp
ASIAN MARKETS:
China’s stocks fell,
paring a weekly advance, on concern banks’ bad loans may increase amid
speculation the government will introduce additional measures to curb property
speculation. The nation’s home prices will decline from September as the
government maintains its lending curbs and increases the supply of public
housing, forcing property developers to cut prices to stimulate sales, BNP
Paribas said. Property prices rose at the slowest pace in six months in July as
the value of sales fell 19.3 percent from a year earlier, according to
government data. The property market is in a “very big bubble” that may last
until the government increases interest rates and introduces a real-estate tax,
Jiang Hui, investment director at Star Rock Investment Management, said at a
conference in Shanghai yesterday. Policy makers in April intensified a
crackdown on speculation by enforcing higher down-payment for loans to buy
second homes and telling banks to halt mortgages for third homes in areas with
“excessive price gains.”
INDIAN economy & stock MARKET:
The Reserve
Bank of India has their next policy review taking place on September 16. Gaurav
Kapoor, Senior Economist at Royal Bank of Scotland (RBS) is of the view
that the RBI will increase key rates by 25 basis points (bps). On the
back of robust growth he said, “I think they would go ahead with another 25 bps
hike in both policy rates. I think that will be followed by another round of
policy rate hikes in October as well.”
Annual food inflation
rose marginally to 10.86 per cent for the week ended August 21, after the
previous two-week decline, despite a fall in vegetables prices. Food inflation
had softened to 10.05 per cent for the week ended August 14 against 10.35 per
cent in the previous week.
Our
market opens the last day of the week on a reasonably stable note. Earlier, the
US markets closed marginally higher with the Dow Jones up 51 points while Asia
is trading mixed this morning. Europe has opened in the green but is now
trading quiet and with marginal gains. Markets were flat and range bound for
full day. Market breath was positive. Looking at a futures and options side of
the market is at very high proportion and if market to go up from here this
Futures and Options build up has to come down. This situation is same as when
market was at his peak in January 2008. This really scares us, so we are not
aggressive in terms of taking any new bets. We don’t say market will not go up
but the situation is giving some other picture.
COMMODITY – GOLD:
Gold
rose on Thursday to settle above $1,253 ahead of the August jobs report on
Friday. Prices have reached new two-month highs at $1,254.65, this week after a
raft of U.S. data suggested the world's largest economy could be slowing enough
to warrant further quantitative easing from the Federal Reserve. Monthly ETF
inflows turned positive in August; these need to accelerate for gold to
overcome potential scrap supply at these prices and rise sustainably through
$1,250," Swiss bank UBS noted in a daily report. The data coming out of
the United States is the key driver for the broader financial markets right now
as investors weigh up the chances the world's largest economy will slip back
into recession, which will erode global growth.
COMMODITY – CRUDE:
U.S.
crude oil futures rose for a second day Thursday as Hurricane Earl threatened
U.S. East Coast refineries and a fire damaged an offshore oil and gas platform
in the Gulf of Maxico. The market was generally heading lower before the
Mariner Platform news broke—at the point we did see a shift in the market as it
created a degree of uncertainty, though prices do remain volatile," said
Stephen Schork of The Schork Report daily trading note in Pennsylvania. Traders
remained cautious about the economy ahead of Friday's key nonfarm payrolls and
unemployment data.
AS STOCK MARKET IS RANGE
BOUND AND NOT GIVING ENOUGH OPPORTUNITY TO DAY TRASERS NOW WE SHIFTED OUR FOCUS
ON COMMODITY AND ALL CLIENTS ARE EARNING GOOD PROFITS.
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