Week's Market (9 Jan 13 Jan)

This week is going to start in cautious mode. As corporate earnings are expected to be released this week and European economies have been suffering in past weeks. In this situation world economies are not in a position to withstand any catastrophe more then a week. IMF is worried about a recession in Europe and then spreading into global economies. Once again U.S earnings have attracted the attention of financial markets. U.S fourth quarter earnings are going to be released this week and markets will focus on U.S instead of Europe to place their investment moves. S&P 500 index is also expected to announce 7.8% growth in fourth quarter earnings than last year. The positive news in the labor market of USA is accelerating its economy towards capital gains and overall recovery in the economy. U.K government bonds also known as gilts are now gaining a better position in European investors as other 17 countries of the European group are facing hard time to recover from their debt crisis. This situation is helping gilts to increase its demand in financial markets. France is a trying to persuade investors to buy French bonds with its confident look at future. The French government is expecting better economic activity in its markets. France has shown its determination to focus on economy and not on rating agencies. Germany is facing short fall in its exports and major dropdown is in industrial goods. As world economies are pessimist about world growth rate, so they have cut short their imports budget. German economy has declined 1.1%.The services sector in Germany is in a good condition and going to sustain the economy. China is taking steps to stop decline in foreign direct investment FDI. Steps are being taken to sustain 120 billion FDI in next four years. Chinese finance ministry is introducing new incentives to foreign investors to investment in its emerging sectors.

EUR/USD  The U.S job data has pressurized the Euro to decline against dollar. There is no sharp fall expected for it. Euro in near future is to rebound, so selling policy will be better one when Euro will maintain a regain position is market.

USD/JPY  Bullish outlook is being seen in this currency pair as rebound to 78.20 is expected in the long run and in the long term scenario this pair will move towards its correction phase.

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