Painful first quarter for world financial markets
This quarter started with huge worry concerning real estate bubble breast followed by subprime dilemmas which all are chatting United States economic situation in the direction of a recession. US government and also Federal Get is trying their best to draw economic climate out of this decline by giving tax concessions and also lending money to banks at very reduced and deferred passion terms. Above all events resulted in among the worst quarters for international stock markets. German DAX fell from 8150 to 6200 a web evaluation loss of 24%. Likewise Nifty Junior as well as Nifty Midcap humbled by 45% and 43%. In this quarter crude per barrel increased from $89 to $110 as a result of one or various other events in globe and also stubbornness of OPEC countries to increase oil manufacturing. One thing positive is been seen from cars and truck sales report that tiny vehicle sales are rapidly boosting all thanks to their exceptional fuel performance as $3 a gallon is producing huge hole in every ones pocket. This will additionally prompt price rise in worldwide grain market in coming quarter or 2. Federal governments across the globe need to give serious heed to create better yielding crops or picture is extremely grim for future schedule for primary food staple like wheat as well as rice, which may severely hit nations in Africa and also Asia. Gold gazed this quarter with $845 per ounce and also reached its height of 1030. As a result of steps taken by federal government and fed to reduce fear of recession gold fell by 26% in last 2 weeks touching low of $874 per ounce. 80 per ounce as well as peaked at $21. 30 and now back to $16 per ounce. We expect rare-earth elements will certainly maintain its uptrend in coming quarters and this pullback can be utilized as excellent accumulation point. It is sensible partially of investors as well as capitalists not to be over zealous in either bull or bear side of markets and keep a neutral sight to trade accordingly.