Rising damages in worldwide economic Markets

Published on Mon, Mar 09 2009
Economic and financial situation are deteriorating. And, in spite of the worldwide attempt to alleviate markets and revitalize augmentation, it is only a matter of time before weak confidence opens doors to panic yet again. Signs of establishing damages are noticeable in economics, market operations and surely price. Examining the market’s more usual asset classes, the sense of risk aversion is instantly recognizable. The FTSE 100 has closed pushed to 6 year lows, the Dow Jones Industrial Average has outpaced its fall in the great recession to close for 12 year lows and the Nikkei 225 is just off of levels not seen in a quarter of a century.

Can US dollar still remain as safe heaven?

Published on Thu, Mar 12 2009
Looking at recent situation it’s difficult to see if we can still take US Treasuries as the risk-free assets or not. Apparently the safe-haven position that has advocated the world’s most liquid currency for almost 8 months currently is beginning to confront struggle. Growth predicts for the US keep on reducing as policy attempts dropped short of a consumer and credit-led force in economic movement. On the contrary, the FX market’s distinctive high yielders are in fact finding economic projections that indicate a fast revival. It is making these currencies gainful for both their sound fundamentals and relatively high return. But sentiment after expansion projections and sentiment according to liquidity come under 2 very diverse states of anxiety and risk.

US dollar extending losses

Published on Mon, Mar 16 2009
US Dollar flaw is ready to go on in the upcoming week as an upward correction in risky assets gives capital out of risk free assets in seek of yield. Last week, the US Dollar Index decisively broke under an increasing trend line that had directed prices higher from mid-December, showing the way for an extensive pullback in opposition to the range of main currencies. In fact, the US dollar average value in opposition to its major counterparts is at present -93.7 percent inversely related with the MSCI World Stock Index.

US retail sales may influence risk trends

Published on Thu, Mar 12 2009
US dollar price action was mainly to blame for much of what occurred over the forex markets on Wednesday, as the DXY index at last broke under severe trend-line support, indicating the currency is officially spinning below. There was not much in the way of fundamental news for the US, but that is going to be different on Thursday as the Commerce Department is predicted to reveal that US retail sales drop negative for the 7th time throughout the last 8 months in February, as worsening labor markets, tight credit situations, and a year-long depression influence badly on the minds of consumers. More particularly, advance retail sales are expected to have contracted 0.5 % throughout the month, and keeping out auto sales are predicted to have drooping 0.2 %, marking what might result in being a steady trend throughout the 1st half of 2009.

SBP goes for OMO for absorbing additional money

ublished on Sat, Jun 27 2009
KARACHI: State Bank of Pakistan (SBP) Friday obtained Rs59.40 billion from banks for one day at a markup of 7.25 percent for absorbing additional money from the banking system. Today, the central bank conducted an open market operation for absorbing additional liquidity from banks. Banks offered Rs82 billion for the purchase of treasury bills; however, the central bank sold treasury bills worth Rs59.40 billion at a markup rate of 7.25 percent. According money market dealers, additional liquidity is being witnessed in the banking system owing to commodity operation by various organizations.

Oil below 69 dollars in Asia

Published on Fri, Jun 26 2009
SINGAPORE: Oil prices fell in Asian trade Thursday on a stronger US dollar after the US Federal Reserve reaffirmed its policy of keeping interest rates at near zero. New Yorks main futures contract, light sweet crude for delivery in August, shed 15 cents to 68.52 dollars a barrel. Brent North Sea crude for August delivery declined 16 cents to 68.17 dollars.

SECP introduces criteria for open-end schemes

Published on Fri, Jun 26 2009
KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has introduced the criteria for categorization of open-end schemes managed by Asset Management Companies. Categorization has been introduced to facilitate investors in making informed investment decisions, specify investment parameters and eligible asset classes, áidentify risk profile of a scheme, enable investors to compare performance of various open-end schemes with others and against a relevant benchmark and bring uniformity. On the whole, categorization of schemes will enhance investor confidence by improving transparency to catalyze growth of the mutual funds industry, in line with best international practices.