Category: Market Trends & Analysis

Japan’s Strategy Could Disturb Emerging Markets

Apr 23 2013
Taylor
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Japan’s recently adopted stimulus program could spell doom for emerging markets as a steady inflow of cash into such markets may force nation’s investors into chasing higher returns. This could cause more harm than good for markets of developing countries. The underlying fear here is that this huge influx of money could send the markets into turmoil as it would push currencies higher and could even trigger higher prices. This would in turn promote exports, as they would become more expensive, while roping in discounted imports. This is bound to affect domestic traders to a great deal, in a negative way actually. There is no guarantee if the money will stay because if the possibility of higher returns exists in another country, the money would gradually find its way there.

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Moody’s Goes After British Banks

Jan 09 2012
BrianTFN
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moodysBritish banks had a bad day in the office as Moody’s investor’s ratings cut the debt and deposit grades of 12 banks; a list includes heavyweights like Lloyds and the Royal Bank of Scotland (RBS). Moody’s cited the reason that governmental support for these banks has declined and there is very less likelihood that the government will jump in and rescue in the event of a collapse.

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Egyptian Shares Jump the Most in Over Seven Weeks

Jan 08 2012
Lindy
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After a 4.5 per cent drop in the past week, Egyptian shares are now headed towards their largest gain since the month of August. Global markets as a whole have rallied in this week given the optimism surrounding the situation in Europe and the likelihood that the debt crisis in that region will be brought under control. The Standard & Poor’s 500 rallied 2.1 per cent in the week while Europe Stoxx 600 climbed 2.6 per cent after European Central Bank President Jean Claude Trichet declared a new plan to fight the debt crisis by purchasing bonds more bonds.

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Merkel Willing to Recapitalise Banks

Jan 06 2012
Alex
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The Chancellor of Germany, Angela Merkel, released a press statement on Wednesday that Berlin was ready to discuss possible recapitalization at the EU summit, later this month. The banking sector needs to be urgently infused with more official and public sector capital, in order to improve the staggering economy. After meeting with European Commission President in Brussels, Merkel also said that the financial officials need to assess the current banking capital situation and then develop “uniform criteria” as soon as possible. A spokesman for Merkel also told reporters that it is imperative that sufficient capital is available to all the banks in Europe.  

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