21 March 2011

Should know about before the opening bell

Ten days after the tsunami and earthquake hit the Fukushima Daiichi nuclear plant, fears about nuclear contamination rise further. Inside the plant, the situation remains grave. Although electricity has now returned to some of the reactors, the crucial number 4 reactor is still without power. Meanwhile, aftershocks continue to rattle Japan, the latest being of 4.5 magnitude.

In the US, markets rallied on Friday but ended lower off the highs of the day amid global uncertainties in West Asia and Japan that continued to keep investors wary.

European stocks settled higher on Friday, although slightly off earlier highs, as investors welcomed the group of seven industrialized nations' intervention to stem the yen's rise and Libya’s move to halt military action.

Oil prices again in the cross-hair have been rising in early Asian trade as traders focus on the situation in Libya. Brent prices are inching closer to the 116 dollar mark.

The dollar has started the week in Asia, marking slight gains on the euro and the yen. The Bank of Japan and other G-7 central banks on Friday intervened in the currency market, with the multi-lateral intervention. This intervention sent the dollar-yen rates at 82.

Libyan leader Muammar Gaddafi went on national TV via telephone, vowing to defend Libya against what he called crusader aggression. Earlier the US fired more than 100 missiles at Gaddafi's air defences as UK and French forces helped to enforce a UN sanctioned no-fly zone over the country. The airstrikes devastated the Libyan tank force near Benghazi while about two main airbases were reportedly hit.

Elsewhere in the region, it's the third day of protests in Syria. Yesterday, thousands took to the streets calling for a revolution. Crowd set fire to the ruling Ba'ath party head quarter in the southern city if Deraa demanding an end to 48-years of emergency law. Protestors say Syrian security forces fired into the crowds killing one person and wounding more than a 100.

And Yemen’s embattled president has sacked his government in face of massive protests demanding his resignation. The move comes as tens of thousands of people turned out in the capital Sanaa for the funeral of 52 people gunned down by snipers at an anti-government rally on Friday.

Bahrain's main opposition groups meanwhile demanded conditions be met before they talk to the government. They have called on the security forces to release demonstrators in the month long protests and the crackdown and ask the Gulf Arab troops to leave before any talks can be held. But the opposition also seems to be softening their stance overnight.

Meanwhile, in Saudi Arabia thousands took to the streets in celebration after King Abdullah announced a fresh stimulus in a bid to ease social tensions, including last month's 37 billion dollars economic package. The king is now offering a total of 93 billion dollars in handouts.

And back home, it was a tough session for our markets on Friday with the Nifty closing down 73 points at 5,373…for the week, the Nifty ended down 1.5%.

Also, check out all the STOCKS IN NEWS.

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