News January 30 2014 Emerging Nations in financial crisis

I’m Amy Anderson for the Optionally News Team
Let’s take a look at the global market highlights and news that all traders and investors should
be aware of. Federal Reserve continues tapering
Emerging Nations in financial crisis And New Zealand’s central bank holds rates Let’s take a quick look at what is happening
in the global markets now. Wall Street closed sharply lower after the
Fed announcement. The declines began ahead of the conclusion of the Fed’s Federal Open
Market Committee meeting that is overwhelmingly expected to trim another 10 billion from the
Fed’s bond-buying program. European stocks slumped despite rate hikes
in Turkey and South Africa as concerns over emerging markets persisted ahead of an expected
decision by the US Federal Reserve to cut stimulus. London’s benchmark FTSE 100 index
ended the day down point 43 per cent. Asian equities are getting battered this morning
as investors remain worrisome about the emerging market crisis that is developing quickly,
even though the IMF chief has assured the markets that there is no crisis. Japan’s Nikkei
was off 3.2% in morning trading, while Hong Kong’s Hang Seng dropped 1.4%.
Investors have been rattled in recent weeks by growing instability in Turkey, India, Brazil,
Indonesia and South Africa as the Federal Reserve rolls back the bond-buying program
that has supported growth in emerging markets. Weakness in China’s all-important manufacturing
sector has only added to worries. In the foreign exchange markets the New Zealand
Reserve Bank has kept the official cash rate at 2.5 per cent, but says the rate will have
to rise soon as inflationary pressures escalate in an economy with “considerable momentum”.
The kiwi dropped as low as 81.70 after the announcement.
Most forex traders are closely monitoring the emerging markets after India, Turkey and
South Africa increased their interest rates trying to prop up their currencies. After
an immediate jump in value the currencies returned to their declines leaving jitters
in the market place. Many emerging markets have benefited over the past few years as
the Fed and other central banks have pumped money into the global economy. Moving to the commodities market gold has
climbed as turmoil in emerging markets and a drop in global stocks renew investor interest
in safe-haven assets. Gold initially cut their gains in post-settlement trading after the
Fed’s statement, but quickly recouped those losses and is trading at 12-62.20.
The most recent EIA inventory, surprised speculators as inventories climbed more than expected
weighing on crude oil prices. U.S. crude supplies added 6.4 million barrels to 357.6 million
barrels for the week ended Jan. 24, topping market expectation. Light, sweet crude edged
down 5 cents to settle at $97.36 This is Amy Anderson from OptionRally signing
off. Follow me on Facebook and watch for our new financial terms of the day and our weekly
events news.


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