Friday, May 21, 2010

Greece Hangover

Greece hangover continues…

The market is yet to recover from the Greece crisis, as markets across the world continues to slide with standard 2 % down on daily basis!

Indian markets fall in the morning and tries to recover in the late afternoon.

Chinese market will be up when the whole global market is down and vice-versa!!!


EU and IMF finally rescued the beaten up EURO and came up with 1 trillion $ package to resolve the debt and budget deficit crisis in Europe.

The news sparked around 5 – 10 % rally, but finally came down on the subsequent days with analysts calling for more fundamental action rather than ornamental changes.


Germany passed EU aid package and USA passed financial reform bill.


Germany banned naked short selling of EURO thereby providing stability to EURO but markets usually doesn’t like any restrictions and effect is there to see. Markets were down for couple of days, due to the short sell ban.


Dow Jones has entered the correction zone officially.

Meanwhile, there was 998 points fall in US markets and 500 point recovery in span of 30 minutes. Initially, rumor was that the market crashed due to Greece. Many were envy of Greece ability to bring down markets so heavily! .One of the theory going around was that the crash was due to a typing error by a broker! Instead of ‘M’(Million), ‘B’(Billion) was typed. Ahhh.. that makes a real difference.. !!


Couple of events that needs to be watched:

1. Greece fallout spreading to other countries. (Old issue)

2. South vs. North Korean possible war. (New issue)


Indian markets are keeping a close watch on Euro / US events as there are no major events in India and are looking for the world market for direction.

Hope to see GREEN soon, RED is so scary!!!

2 comments:

BigShoe said...

Hey Jags.. Nice summary of events in market.. just wanted to add few more events which has been in news abt the 998pts fall in Down at 2.47Pm on bizzare thursday...

there were rumors of system error which made the market fall and the investigation was initiated nextday to get the details of the event.. but not sure of the result till date. got to appreciate the recovery thou.

To accelarate the event, the stock that took the major beating on the dooms day was "Accenture" which fell to $0.01(One cent) which was trading around $40. On a easy note This might look funny that 40 to 0.01 in matter of seconds,looks like we are giving a break assembly advertisement but the market are behaving no better..(Accenture ">" perfomance delivered..) :)

jag said...

Thanks for the update.
Even Procter & Gamble fell heavily.