Friday, October 28, 2011

stock market outlook weekly october 31 - 4 november 2011

stock market outlook weekly october 31 - 4 november 2011 : U.S. and European stocks fell and the euro eased on Friday as investors booked profits after the prior session's strong rally and a disappointing Italian debt auction showed investor confidence in Europe remained shaky despite the latest rescue deal.

Losses in stock markets boosted prices of safe-haven Treasuries, while oil prices declined more than 1 percent on uncertainties over the details of Europe's plan to tackle its debt woes.

In Italy's debt auction on Friday, the country's 10-year borrowing costs topped 6 percent for the first time since the launch of the euro more than a decade ago. It was the first euro zone bond auction after policymakers struck a long-awaited agreement to slash Greece's debt burden and strengthen the European Financial Stability Facility, the region's rescue fund.

Next week, further details on the European package are likely to emerge. The week will be busy economically, with the first estimate of Q3 GDP due in the UK, and monthly employment figures in the US. The latest interest rate decision is also due from the European Central Bank. Amidst another busy few days of company announcement, the Q3 banking season kicks off with updates from Barclays and the Royal Bank of Scotland.

Analysts said much of this month's 5.8 percent rally in the euro against the dollar was driven by a squeeze of short positions, with speculators reluctant to build bets against the euro ahead of the G20 and a U.S. Federal Reserve meeting next week.

Any hints the Fed is considering another round of monetary easing to boost the U.S. economy or of a commitment from G20 players to support the euro zone bailout fund would likely push the euro higher.

Share market trend for 31 oct is considered to be positive but market may behave little choppy in the mid session following the Asian and European market . It is advised to play with caution and be hasty, wait for the right positions to come and then go for it. Plan proper strategy and play according to that. For the latest updates on the stock market, visit Stock Market Today
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