Friday, September 27, 2019

Market Updates

Market Updates::: Good Evening. There are lot of negative developments happening in Global Equity Markets. Most of the economy globally have been seeing *yield curve inversion*. This generally happens when bond yields fall down on account of falling interest rates. ++++ US- China trade war is another negative development +++ Germany which is the industrial town of Europe is witnessing recession +++ There is news that *Industrial Goods Production in China* has collapsed & this in turn affects the economy/ growth of a nation +++ Globally Companies are trimming their profits or has been seeing contraction in global profits +++ Oil prices soaring high on account of several reasons which is generally not good +++ BREXIT issue +++ Argentina Default -- debt & inflation issues +++ Downgrading Ford Credit Rating +++ Thomas Cook Bankruptcy In spite of all these negative developments, Risky Assets like stock markets have gone to all time high, global stocks have delivered more than 20% , commodities more than 15% etc. The basic reason is *there is liquidity coming into the markets*. Hence the global markets are moving in spite of the negative developments. In India on account of US -China Trade War, we have been seeing volatility in the markets.

No comments:

Post a Comment