Its the first day of the most important week for Euro and world economy. Italy passed their first task of austerity measure and now its Greece turn on Wednesday, followed by EU summit starting from Thursday and conclusion on Friday.
China is heading for big trouble, as pointed in my previously article. Today China PMI came at 52.5 for November down from 54 in October. Shanghai composite is down and its getting close to Oct 3rd low. http://www.google.com/finance?q=SHA:000001
China is the world's second biggest economy, while Italy is the seventh biggest economy in the world. The stock market is already feeling the heat as Italy is in big trouble as you all know. Imagine what will happen, if China joins this party.
So becareful with your investment in stocks, invest smartly and don't go all in. December and January is still the safe month for bullish stock but things can change very quickly.
I think tomorrow, the market is likely to remain flat rest of the day. The currency market is not showing any sign of enthusiasm. It will be very interesting to see how Italian bond is behaving http://www.bloomberg.com/quote/GBTPGR10:IND, it has started to rise again on Friday.
Few economic data is coming out tomorrow.
ISM non mfg at 10 EST, 53.9 or higher is bullish sign, while 52.9 or lower is bearish sign and 50 or lower is very bearish sign.
Factory order (10 EST) 0 or higher is bullish sign, while negative or 0 is bearish sign.
There is no need to be bearish or bullish as EU are working on something which they do every month. So, the best thing do this week is watch how the market is behaving. Invest on daily basis or wait till next week. Its not the end of Euro, but the it will be in lot of pressure.
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China is heading for big trouble, as pointed in my previously article. Today China PMI came at 52.5 for November down from 54 in October. Shanghai composite is down and its getting close to Oct 3rd low. http://www.google.com/finance?q=SHA:000001
China is the world's second biggest economy, while Italy is the seventh biggest economy in the world. The stock market is already feeling the heat as Italy is in big trouble as you all know. Imagine what will happen, if China joins this party.
So becareful with your investment in stocks, invest smartly and don't go all in. December and January is still the safe month for bullish stock but things can change very quickly.
I think tomorrow, the market is likely to remain flat rest of the day. The currency market is not showing any sign of enthusiasm. It will be very interesting to see how Italian bond is behaving http://www.bloomberg.com/quote/GBTPGR10:IND, it has started to rise again on Friday.
Few economic data is coming out tomorrow.
ISM non mfg at 10 EST, 53.9 or higher is bullish sign, while 52.9 or lower is bearish sign and 50 or lower is very bearish sign.
Factory order (10 EST) 0 or higher is bullish sign, while negative or 0 is bearish sign.
There is no need to be bearish or bullish as EU are working on something which they do every month. So, the best thing do this week is watch how the market is behaving. Invest on daily basis or wait till next week. Its not the end of Euro, but the it will be in lot of pressure.
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