Asian markets have swollen up like they were on steroids as the positive momentum filtered from the US markets. Traders are certainly paying much attention to the silver lining in the economic data and keeping their focus that the efforts of the people bank of china will work. The kind of panic which we experienced during the past few weeks in the market have very much evaporated and this week is becoming a very robust for the equity markets. The Chinese government is also working on its fiscal sides and it has announced that the country is bringing forward the construction projects which will aid the the growth in the county.
The Chinese authorities are also confident that the recent volatility in the equity market will have no stains left and the bank’s commitment is strong in sparking the economic growth.
In Europe, investors have paid much attention towards the upward revision of the Q2 GDP for the eurozone to 0.4%- which makes a perfect stance for Mr Draghi to prove to his critics that his efforts are surely working. As for today, european futures are catching up with asian indices in terms of their momentum .
Nonetheless, the main focus amid traders remain towards the upcoming federal reserve meeting which is due next week. A lot of volatility is expected around this time frame and perhaps only pro should participate around during this moment. The chief economist of world bank, Kaushik Bass has warned once again that his concerns are more related towards the emerging market if the Federal reserve raises the interest rate. His qualm was very much in line with IMF.
DISCLOSURE & DISCLAIMER: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam