Mixed Sentiment Keeps Correction In Check

It's been quite weak close for global equity markets last week as they still are grappling with uncertainities related to extent to which large financial institutions will report undisclosed losses due to subprime mess, home foreclosures, rising credit card defaults, falling job market, falling home sales and home prices along with rising inflation and consumer confidance. Huge volatile moves are seen across the equity markets with weak sentiment taking the centre stage and no positive news coming equity way. U.S. fed will again cut rates aggressively is well taken by markets and no positive surprises from that end, markets know very well that cutting rates is not the solution to all the huge problems ailing the credit markets. It's the confidance and good faith that has taken severe beating this time around and will take a long time to come to normalcy. Commodities are looking strong due to certain possibility of rate cut by U.S. fed and weakning of U.S. Dollar. Profit booking can clearly emerge at this juncture as investors are deep in profits in key commodities like Gold, Silver, Copper, Nickel, Alumunium, Zinc, Crude Oil.