Market View
Market View updated on February 16, 2012, 11.00 Pm
Usa
Traders are watching to see what Fed members had to say about more quantitative easing, but Fed watchers are also looking
to see what the Fed says about its members expectations for its balance sheet and how they formed their views on the target Fed funds
rate.
Europe
Germany had its first negative quarter since 2009 with a decline of 0.2%, compared with the previous quarter. But
in France there was surprise growth of 0.2% at the end of last year, attributed to healthy export growth.
Overall the 17 nations
that make up the eurozone saw economic activity shrink 0.3% in the fourth quarter. By comparison the United States reported growth
of 0.7%. The eurozone has not slipped into recession as it reported growth of 0.1% in the third quarter.
Europe's debt crisis
has already pushed Greece, Portugal and Belgium into recession, defined by two consecutive quarters of contraction.
|
European growth
rates
|
|
|
4th quarter
|
3rd quarter
|
2011
|
|
Eurozone
|
- 0.3%
|
0.1%
|
1.5%
|
|
Germany
|
- 0.2%
|
0.6%
|
3.0%
|
|
France
|
0.2%
|
0.3%
|
1.7%
|
|
Italy
|
- 0.7%
|
- 0.2%
|
0.4%
|
|
Austria
|
-
0.1%
|
0.2%
|
1.2%
|
|
Netherlands
|
- 0.7%
|
- 0.4%
|
1.3%
|
© 2011 - LakshmiStockGroup.com. All rights reserved.
The above information is incomplete as it is taken from mails send to our clients
The recessions in Portugal and Greece deepened in the fourth quarter of 2011. Greece's economy shrank at an annual 7 percent rate
in the last quarter.
Underlining Europe's weak economic outlook, rating agency Moody's warned it may cut the triple-A ratings
of France, Britain and Austria and it downgraded six other European nations including Italy, Spain and Portugal.Though it affirmed
its triple-A rating on the euro zone's bailout fund, the European Financial Stability Fund.
Moody's also warned on Thursday that
it may cut the credit ratings of 17 global and 114 European financial institutions in another sign that the impact of the euro zone
government debt crisis is spreading throughout the global financial system.
India
Indian markets are witnessing strong
rally on back of liquidity, the main investors are as usual FIIs.
We get cautious about liquidity waves because waves come and go and
all the time it always losespower after first round always at higher levels and it will happen one or two month.
It is
still difficult to say that whether a bottom fishing happened or not, because the rally is mainly due to FIIS money and there is no
convincing pattern yet made that can clear it. The time being FIIS money pushing markets higher.