Emerging markets better developed nations in stock

Robust growth in India and China has helped to pull the markets up and thus the stocks in these countries outshine the rest of the developed nations during the year 2009. But there is a bad news for these two countries as per the report of “Survive and Prosper – Emerging Markets in the Global Recession” which predicts that these two economies would contract in the later part of this year.

Another report says that with the exception of Eastern Europe, the emerging market economies fare better than the developed countries which are definitely a silver lining in the offing. The report further adds that emerging Asian Tigers including India will remain the favorite investment destination in the years to come. Asian markets figured in the top ten list of the preferred destinations among the non-BRIC countries which is inimical to the growth of the stocks in the Eastern Europe.

The market movement in India and China showed that there is a degree of independence from developed economies as far as stock growth in concerned but the GDP gap between the developed and emerging nations remained at about 6 percentage which shows that there is a certain degree of dependence. But there is no second opinion in that the emerging markets support the global profitability. Global companies which had their branch office in emerging nations reported brisk business even during recession compared to that located in developed nations.

However, the investors are prepared to stay the course and are of the opinion that the investment from emerging markets would be better in the long run and the wait would be worthy.

Stocks on low ahead of Fed meet

Most of the markets remained closed on Monday due to holidays and the investors are keenly watching about the moves of the Fed Chairman Ben Bernanke whose reported remarks about the recession in the US as ‘likely over’ which helped the stocks to move northward during the past week. The Dow Jones industrial and Standard and Poor’s 500 index went down by 0.6 per cent in early trading.

The stock movement and the sub-prime crisis...

The sub-prime crisis is not over?

Well… there was a talk in the financial parlance that the crisis is about to end but the OECD head Mr. Angel Gurra was of different opinion and he was describing it as “collective bankruptcy and damning failures throughout the chain of financial risk and regulations.” He was obviously referring to the financial measures that the government took was not sufficient to meet the ends.

He said the entire institutional chain though well oiled with all this sophistication, yesterday the pride of the authorities has been put into question by the collective bankruptcy.

US stocks fall

US stocks turned lower after opening slightly higher on Wednesday (9^th April) mainly due to cut in the earnings guidance from the package delivery giant UPS. The continuous weakness for US consumers will all likelihood hurt the corporate gains. UPS was recently trading down 3.2% at $70.90, Boeing gained 3.8% to $77.91 and was one of the strongest mover in the Dow with the US aerospace giant saying it has delayed delivery of its 787 dreamliner airplane program. However industry watchers have a different story to tell and they expected a higher growth in the year 2009 albeit the delay in the delivery of the macho machine.

Europe shares down

Further credit market loss made the investors nervous and jittery and this resulted in the bank shares going down; miners too went down as the fleeting acquisition talk was off. Banks suffered the most after rallying up during the past week on belief that the sector had turned the corners when the Swiss lender UBS announced a large write down, widely regarded as a clearing deck for a recovery.

Across Europe, Britain FTSE 100 was down 0.1%, Germany’s DAX 0.3% down, France CAC 0.4% down (April 9) and the Indian sensitive index sensex was 95.5 points down and the Nifty 14.0 points down at the close of market on April 10.