A fresh wave of anxiety swept the markets caused by doubts over capital-raising plans and Hungary’s solvency. This led to investors selling shares in the continent’s major lenders. Italy’s biggest bank, UniCredit saw its share price fall by over 17% after it announced a heavily discounted rights issue, which valued stock at less than a third of it current price. Over in Hungary, the yield on 10 year bonds soared to over 10% after the government failed to find enough buyers for the 45bn forints (£116m) of sovereign bonds it was trying to sell. This c

Read more…

Great day for many PAT traders or should I say Market Maker Business Model Traders

I received a lot of mails this morning about what you will see on this video (10 mins long)  Many of you had made some serious returns, a few new traders had missed out because they were unsure. (Hey that is part of the learning process)

Tell me what you think of this format for ongoing training?

Read more…

In a move that caught the global forex markets unaware, the Bank of Japan today, in a unanimous vote, announced a reduction in its lending rate to a mere sliver above zero percent. In addition to the near-zero interest rate, the Japanese central bank also announced the initiation of a new 5 trillion Yen fund (equivalent to $60 billion) to purchase government as well as corporate debt, all this in an effort to spur the sluggish Japanese economy. 

The effect of the Bank of Japan’s move on the markets was quickly felt, with the Nikkei gaining nearly 1% immediately following the announcement, and closing 1.47% higher on the day. The Japanese Yen was trading against the U.S. Doll

Read more…

The recovery that emerging markets (their economies and financial markets) have staged since the lows of 2008 is impressive. In most corners of the financial markets, all of the losses have been erased, and securities/currencies are trading only slightly below there pre-credit crisis levels. Even compared to twelve months ago, in 2009, the performance of emerging market currencies holds up well. In the year-to-date, however, most of these currencies have appreciated only slightly, thanks to a particularly weak month of August.

The MSCI emerging market stock index is currently down 2.5% since the start of the year.

Read more…