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• The Friday after Thanksgiving will be watched for US consumer sentiment; it kicks off the shopping season

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  Heinz Ettel    Premium Member   Group moderator

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  The Friday after Thanksgiving will be watched for US consumer sentiment; it kicks off the shopping season

  Equities and key indices suffered fresh losses last week as funds and investors dumped stocks tracking the turmoil in global economies. US stocks, which fell sharply during the week, drove the markets lower globally and aided negative sentiments. Growing troubles at Citigroup Inc. added to market woes, reinforcing fears that the worst is far from over while worries over the fate of US auto makers weighed down market sentiments.
  India’s own situation was somewhat neutral, as in, there was no bad news per se. Persistent selling by foreign funds and the continued depreciation of the rupee remain major problems, but falling inflation continues to reinforce the market’s belief that an interest rate cut from the Reserve Bank of India could be just around the corner. This sentiment is likely to help boost the Indian stock markets in the short term.
  
  Consolidation ahead
  
  As a result, markets are likely to see some consolidation this week, prior to the Thursday Thanksgiving holiday in the US. Usually the Friday after Thanksgiving kicks off a holiday shopping season in the US and will be closely watched for consumer sentiment signals. The return of consumers is what the market really wants, so, if they stay home, it could turn out much more bad news.
  
  Vipul Verma
  
  • 23 Nov 2008, 8:38 pm
  Heinz Ettel wrote: > Equities and key indices suffered fresh losses last week as funds and > investors dumped stocks tracking the turmoil in global economies. US > stocks, which fell sharply during the week, drove the markets lower > globally and aided negative sentiments. Growing troubles at Citigroup > Inc. added to market woes, reinforcing fears that the worst is far > from over while worries over the fate of US auto makers weighed down > market sentiments. > India’s own situation was somewhat neutral, as in, there was no bad > news per se. Persistent selling by foreign funds and the continued > depreciation of the rupee remain major problems, but falling > inflation continues to reinforce the market’s belief that an interest > rate cut from the Reserve Bank of India could be just around the > corner. This sentiment is likely to help boost the Indian stock > markets in the short term. > > Consolidation ahead > > As a result, markets are likely to see some consolidation this week, > prior to the Thursday Thanksgiving holiday in the US. Usually the > Friday after Thanksgiving kicks off a holiday shopping season in the > US and will be closely watched for consumer sentiment signals. The > return of consumers is what the market really wants, so, if they stay > home, it could turn out much more bad news. > > Vipul Verma