Tuesday, February 26, 2008

Stocks Up Again

It's bcase of turmoil in U.S. markets that prompted Asian equities to undergo severe correction, and it's Dow Jones again who's strength is making Asian capital markets register positive gains for the past few days. A sharp rebound in late trading hours saw Down Jones ending with nice gains, this made Asian and European stocks to have positive gains. Stocks across the globe are now recovering from extremely tough period of steep and quick correction, but one area of major concern still remains is continued firmness in commodity prices. Almost all major usable commodity is seeing life time heighs with falling inventories at warehouses. Crude oil is consistently trading very close to U.S.$100 per barrel and gold, silver too are at their life time heighs. Copper, alumunium, coking coal, steel, iron ore, agri coomodities all are trading very firm. This is very serious from inflation point of view which is moving up sharply globally. Stocks will face resistance from this worry of rising inflation at higher levels, making stocks volatile and cautious.