Fed Tapering Effect May Be Fading Away As Asia And Europe Recover Their

Asia markets closed mixed last night but have recovered some of their losses. People Bank of China pumped nearly 50 billion Yuan via short term liquidity operations due to a record increase in short term interest rates.

The Nikkei Index was the best performing index during the session which closed with a gain of 1.66%. The index is still down nearly -15.34% so far this month. The Hang Seng index was the worst performer and closed with a loss of -0.59. The Shanghai index also came under pressure and closed with a loss of -0.53%.

The brewer company Kirin Holding Co. suffered heavy losses during the session and the price fell by nearly -4.9%. Shares of Hino Motors Ltd and Mitsui Fudosan Co. both closed with a loss of 0.8% and -2.1% respectively. Some stocks in Hong Kong recovered their loss and shares closed up. China Construction Bank Corp and Industrial and Commercial Bank of China Ltd both gained nearly 0.8% and 1.1% respectively.

Back in Europe, the markets have started in a green territory and are trading modestly higher during the early hours of trading. The CAC 40 index is the best performing index during the session and it is up by nearly 0.68%. The FTSE MIB, the FTSE 100, both trading higher with a gain of 0.46%, 0.45% respectively.

Banking sector which was hit hard yesterday is recovering some of their losses. Banca Popolare di Milano Scarl , Lloyds banking group, Deutsche Bank AG all trading up today with a gain of 2.25, 1.5% and 1.3% respectively. However, shares of Talk Talk telecom Group PLC skid by nearly -4.1% due a downgrade by Citigroup which has reduced its rating from neutral to sell.

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