The global markets give out mixed cues this morning. U.S. stocks fell, with the Dow Jones Industrial Average closing below 10,000 for the first time since February, as reports that China may review investments in European government bonds spurred concern the credit crisis will worsen and wiped out an early rally. European stocks rebounded from an eight-month low as investors speculated that recent declines may have been overdone and stronger-than-forecast U.S. data bolstered confidence the debt crisis won’t derail the economy. This morning most Asian stocks fell, led by finance and consumer companies, on growing concern that Chinese property curbs and Europe’s debt crisis will hurt global economic growth. In commodities, Oil declined in New York after a government report showed a larger-than forecast increase in crude inventories in the U.S., the biggest energy consumer. Gold, trading within 3 percent of a record, may gain for a fourth day as investors seek a haven for their assets on concern that the European debt crisis may worsen, hurting stock prices and slowing economic growth. Copper prices gained for the third time in four sessions after reports signaled the U.S. economy is improving, boosting the demand outlook for commodities. The Indian markets trade on a quiet note this morning in the positive territory. Almost all the sectoral and broader indices trade in positive this morning with the exceptions being the IT and Metal indices to trade in red. The Capital Goods, Auto and FMCG indices trade in positive this morning gaining more than one percentage points to provide some support to the market to trade in green. Market breadth is positive with 1,376 advances against 912 declines. The Sensex trades in green at 16,484.50 gaining 96.66 points or 0.59 percentage points. Nifty trades at 4944.65 gaining 27.25 points or 0.55 percentage points.

Source: dalal Street investment journal
Dalal Street Investment Journal