On Tuesday dip was observed in the stocks all over the world. It can mainly be attributed to the upcoming Federal Reserve policy meeting and quarterly result of Apple. On one hand when global stocks are dipping down the graph, dollar is also weakening with each passing day.
It will be interesting to note that Wall Street has witnessed three consecutive subdued starts just in the anxiety of what Apple has to say about global demands and what will be the new interest rates policy of US after two day Fed meeting on Tuesday and Wednesday.
American exchange is not alone in this sally of global stocks. European markets also witnessed a dip 0.5% which was later followed by a warning of low profits by BASF. According to European experts this down fall is mainly due to the struggling crude markets of China and Brazil.
Strong markets like Japan and China also didn’t remain untouched by this global downfall. Japan’s market Nikkei too plummeted even after the gains in their currency Yen. Chinese market Dove also witnessed a fall of 2% though it recovered soon in a volatile trading session. Chinese market’s recovery can also attributed to surprise rate reduction of PBOC last week.
European Central Bank’s chief believes any taboo in the monetary policies can lead to a push up in inflation. Governments should be ready to reassess their monetary policy and should be ready to take the responsibility of the resultant inflation. Euro was seen to be changed to 1.1050 $ after this strong and positive stance of the chief of European Central Bank.
Main reason for this global anxiety still remains the Federal Reserve policy meeting in US. Investors will look for any signals for hike in interest rates now or in December.
