Markets show signs of stabilizing

Posted by Ravi Gulati | Posted in Economy & Markets | Posted on 05-02-2014

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………….Stocks plunged Monday after data showed the U.S. manufacturing sector continued to expand in January but at a slower pace than expected.

Other data showed a similar performance for China’s manufacturing sector, which added to anxieties about emerging markets.

These negative developments come at a time when the U.S. Federal Reserve is cutting back on a key stimulus measure —bond purchases that have kept long-term rates low and supported a strong rally on stock markets.

The withdrawal of stimulus is also proving to be difficult for emerging markets that had benefited from a steady inflow of cheap money courtesy of Fed easing. Now, they’re being hit with steady outflows of that money, which in turn has pressured currencies and raised worries that economic problems in emerging countries could spread to developed markets.

Markets show signs of stabilizing | Toronto Star.

Dow’s year ahead: Rally, plunge, rebound predicted

Posted by Ravi Gulati | Posted in Economy & Markets | Posted on 19-01-2014

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NEW YORK—One of Wall Street’s biggest bulls expects the stock market to suffer a sizable correction for the first time since 2011. But not before the Standard & Poor’s 500 index climbs closer to 2,000, or 8 per cent higher than Wednesday’s record close of 1,848.38.

In a report titled, “A Hop, A Drop and A Pop In 2014,” Craig Johnson, managing director at Piper Jaffray, says the primary trend of the stock market is still up despite a slow start to the year.

Dow’s year ahead: Rally, plunge, rebound predicted | Toronto Star.

Royal Bank quietly cuts mortgage rates

Posted by Ravi Gulati | Posted in Economy & Markets, Financial Planning, News of Interest | Posted on 19-01-2014

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Royal Bank of Canada, the country’s largest mortgage lender, has quietly cut some of its mortgage rates this weekend. The move appears to be part of a broader dip in rates, although economists generally still expect an increase in 2014.

Five-year fixed mortgage rates rose industry-wide for much of 2013, from their low of 2.64 per cent in April to their high of 3.39 per cent in September, according to Alyssa Richard, the chief executive officer of RateHub.ca. They edged down a bit later in the fall but had generally been steady at around 3.25 per cent since then

Royal Bank quietly cuts mortgage rates – The Globe and Mail.

Asian Stocks Fall, Led by Nintendo, After China GDP Data

Posted by Ravi Gulati | Posted in Economy & Markets | Posted on 19-01-2014

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Asian stocks fell, led by Nintendo Co., after the release of data on China’s factory output and gross domestic product.

China’s economy expanded 7.7 percent in the fourth quarter from a year earlier, the National Bureau of Statistics said today. That compares with the median estimate in a Bloomberg News survey of 44 analysts for a 7.6 percent gain in gross domestic product and 7.8 growth in the previous three months

Asian Stocks Fall, Led by Nintendo, After China GDP Data – Bloomberg.