Joke on Wall Street

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Joke on Wall Street
Joke on Wall Street

Joke on Wall Street

The Wall Street has been confusing not only the intra-day traders but the swing traders as well, since the market is in doldrums where one day it rises and re-tests its all-time high level and the other day it falls badly.

The SP 500 index fell substantially yesterday in the U.S. session on Wednesday where the investors reacted upon the rumors or should we say hints that they got regarding the tapering of the stimulus plan by the Federal Reserve this December. The market was trading at 1805 level but then started dropping smoothly and made a low of 1778 and is currently trading at 1779 in the Asian session on Thursday.

Asian Markets

The impact is of course seen on the Asian markets as well, as the MSCI Asia Pacific index dropped by 1.1% early this morning and the Topix index of Japan fell by around 1% where yen is trading firmly against the U.S. dollar this week so far.

Interesting Fact

Central banks of major economies including the United States and Japan have been involved in injecting money in the economy this year, where it is estimated that the value of global equities in 2013 have been boosted by more than 8 trillion dollars.

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This is the proof that the corporate sector in these major economies have grown to a great extent and the stock markets climbed notably, as a result of increasing returns on the investment and the job creation.

For instance, investors or buyers from outside Japan injected $125 billion into the Japanese economy this year in terms of stocks in 2013, which obviously shows the outcome to everyone where the Nikkei index was trading at a 6-years high once again, while the Topix index gained by 45% this year.

Other Stocks

Doosan Heavy Industries and Construction Co. witnessed its shares dropping by around 4.6% in Seoul, as the company announced that it will be selling 9.5 million treasury shares, which is taken negatively by the investors where they must be thinking that the company’s future growth prospects might not be sound enough that is why they are selling their shares.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com