Wednesday, February 13, 2008

European Central Bank Too Will Reduce Rates

After Bank Of England reduced interest rates, it's now the turn of European Central Bank to follow the suit. Developed nations are now under pressure from various economic factors to start reducing interest rates in order to contain their sagging financial system and credit markets and hence financial markets. Accute nervousness among investors continues and thus cause of high volatility. Today's trading session in Asia saw stock markets of HongKong, Japan, India ending with positive gains. Chinese stocks, however, ended the sessoin with losses. London and German stocks too have closed with some losses. Only exception was French stock who bucked the weak trend. Commodity markets too are seeing negative ticks in Gold, Silver, Zinc, Copper. It will be interesting to see how U.S. fed responds to U.S. economic data with rate cuts, if any.