Hollingsworth Daily Post

by Raymond Chatlani

On Monday, Asian indices were all higher except for South Korea and Taiwan as investors plowed cash into stocks amid expectations the U.S. Federal Reserve will take action to prevent the American economy from slipping back into recession. European stocks followed Asia's momentum on hopes for US Feds action. US markets ended flat before the start of a busy earnings week.

On Tuesday, Asian markets fell except for China amid reports China had raised reserve requirements for banks to cool lending and as investors awaited earnings from U.S. companies. China told its top six banks to increase reserves in a new move to control lending as Beijing tries to cool inflation and housing prices without derailing its recovery from the global slump. European indices fell modestly on China's aim to curb lending. US stocks opened mixed but closed higher upon the release of the minutes from the FOMC's meeting on September 21. According to the minutes, members of the FOMC are prepared to provide additional accommodation, if needed, to support the economic recovery and to return inflation, over time, to levels consistent with the FOMC mandate. In other words, further quantitive easing.

On Wednesday, Asian stocks rose following an upbeat fourth-quarter forecast from computer chipmaker Intel last night and as Japan's machinery orders, a closely watched indicator of future business investment, rose 10.1% from the previous month which was far better than a 4.0 percent drop projected by economists, marking the third straight month of growth. European shares rocketed after the minutes of the FOMC suggested it was closer to introducing fresh stimulus measures to support the economy. US markets rose after solid earnings news and on hopes for further quantitative easing.

On Thursday, gold hit a new high of $1,379 an ounce with silver exceeding $24 an ounce. Asian stockmarkets rose except for India which was flat following better than expected earnings by US corporations. European markets were mostly lower except for Germany. US stocks edged lower after another disappointing report on jobs where weekly jobless claims rose by 462,000 , but losses were limited because traders expect the Federal Reserve will act soon to strengthen the economy.

This morning Asian indices were mostly lower as the US jobs market remains weak and on a strenghtening Japanese Yen with South Korea, Singapore and China rising; the latter rocketing 2.88%. European markets were mostly lower except for germany. US markets declined as consumer sentiment unexpectedly dipped in early October to its weakest level since July, with buying plans on the decline, a survey released Friday showed. The Nasdaq rose on Intel's and Google's strong earnings.