Fed cuts rate by 50 basis point. Now what next?

[Venkat123]

fizzler,
That's the ADP report. The ADP report has missed some 10 times in the last 12 months.

 

[Venkat123]

CNBC report of downgrading $250 Billion bond came way after market was closed.

I don't know what went wrong, but market will depend lot on friday's job report. If it comes weak then market will go down and if that comes up , market will think econom yis doing better and rate cut will help market going up.

Fitch also downgraded a monoline FGIC to AA. Yet another rescue plan is faltering.

 

[niksan]

I think the markets will go north in Feb. There will be lots of money freeing from the reliance power and other IPOs which will eventually come to the secondary markets. also, most of the results have been and upto market's expectations.

Other than that, a lot of money is on the sidelines. once markets shows some north bound move, that will flow in too.

and if...the all this doesn't work and the markets head south, there is not much room left on the downside...NIFTY 3600 in wildest imagination.... we already have touched 4500.

If there is no reason for the markets to go up, there are not too many reasons to break the current lows either. btw, keep in mind that 2008 is election year for US and india too. the indian budget may also make investors happy for that matter.

hope for the best!

 

[sharmaji]

FTSE, Nasdaq, Dow Jones all up today, where do you think about Nifty and sensex will go tommorow??

 

[alpesh14]

Sharmaji,

Sensex takes lot from overseas market. If janap or hongkong market is in deep red, we open in deep red. hopefully tomorrow there won't be any reason for any market to be in red. so i expect sensex and nifty to be up for tomorrow. but you have to see earning reports which comes after closing bell.

 

[fizzler]

rumour is that the job report shows numbers double more than that was expected for january. 120,000 jobs created by private sector while only 60,000 was expected. (approx figures)

As I had said,

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-22637467.htm
ADP report says US added 130,000 private jobs in January

Adding the 20,000 new government jobs that tend to be created monthly, today's ADP report would suggest 150,000 total jobs for January.

http://www.reuters.com/article/domesticNews/idUSWEN365620080130?feedType=RSS&feedName=domesticNews
Private sector adds 130,000 jobs in Jan: report

Private employers added 130,000 jobs in January, about three times the number that economists had been expecting, a report by a private employment service said on Wednesday.

 

[Venkat123]

fizzler,
Actual payroll numbers came in at -17K. That's a minus before 17. There was a net loss of 17k jobs in the US in Jan. Everyone is of course "surprised".
ADP numbers miss again but that's not a surprise.

They also reported 200K jobs that were shown as created in 2007 were actually not created!

Also some 467K workers stopped looking for jobs in January after 12 months of trying.

 

[Venkat123]

Are Brits next on the subprime list?

http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=511874&in_page_id=1770

Credit ratings agency Experian have drawn up a map showing which areas of the country are most at risk from a fall in prices.

It found that in some parts of Britain, the average mortgage debt is more than 90 per cent of local property prices.

This leaves owners vulnerable to negative equity - where the amount owed on the home is more than it is worth.

 

[yatishjain]

Latest News...

MUMBAI: A host of public sector banks may cut lending rates following premier home loans lender HDFC slashing the rates by 0.25 per cent.

At least three state-owned banks have indicated to cut rates by as much as done by HDFC, with more likely to follow in the coming weeks.

Union Bank of India (UBI) Chairman M V Nair said the bank's Asset-Liability Committee (ALCO) would be meeting next week to consider a revision in rates.

"There is a case for deposit rates to come down, and the lending rates as well. Deposits are growing at around 25.5 per cent, much above the Reserve Bank's projection," he said here.

The Reserve Bank, at the quarterly review of its monetary policy in end-January, had hinted that there was a case for banks to lower their lending rates, which had peaked during the course of the last year.

 

[Venkat123]

Latest News...

MUMBAI: A host of public sector banks may cut lending rates following premier home loans lender HDFC slashing the rates by 0.25 per cent.

At least three state-owned banks have indicated to cut rates by as much as done by HDFC, with more likely to follow in the coming weeks.

Union Bank of India (UBI) Chairman M V Nair said the bank's Asset-Liability Committee (ALCO) would be meeting next week to consider a revision in rates.

"There is a case for deposit rates to come down, and the lending rates as well. Deposits are growing at around 25.5 per cent, much above the Reserve Bank's projection," he said here.

The Reserve Bank, at the quarterly review of its monetary policy in end-January, had hinted that there was a case for banks to lower their lending rates, which had peaked during the course of the last year.

Classic housing bubble getting primed for a burst.