Irish government said Sunday that it will start formal negotiations with the European Union and the International Monetary Fund over a financial rescue package, pushing speculators to look forward to other European countries like Portugal and Spain.
Portugal is seen as the next domino likely to fall once Ireland’s debt crisis is resolved, but the true showdown will pit bond-market vigilantes against Spain. We believe if Spain goes down, that would be the end of the bull run across the globe.
On Friday US Markets closed in the green after China’s central bank, the People’s Bank of China, announced the year’s fifth hike in the reserve requirement ratio by 50 basis points effective November 29.
Asian Markets are trading in the green today with the exception of China.
Dalal Street : Whats happening ?
Indian Markets are in no mood to take any positive global cues and ready to slide on the slightest negatives cues. Key technical levels were breached and we might see more sell-off in the coming days. Year FII selling is blamed to be one of the reasons for the current slide, there is no buying support for the markets on every slide.
While a target of 5600 is doing rounds, it is too early to come out with targets. Investors should stay cautious and pick good stocks at lower levels. We continued our Wait and Watch mode and believe the current volatility gives no room for traders.