Fed warned of global risks to tapering – Aug. 24, 2013

Posted by Ravi Gulati | Posted in Economy & Markets | Posted on 26-08-2013

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Two papers presented in Jackson Hole urged central bankers to think of the international repercussions of their own domestic policies. Christine Lagarde, managing director of the International Monetary Fund, also delivered a speech calling for more international cooperation.

“No country is an island,” she said. “In today’s interconnected world, the spillovers from domestic policies … may well feed back to where they began. Looking at the wider effect is in your self-interest. It is in all of our interests.”

It’s not uncommon for smaller, emerging economies to coordinate monetary policy efforts. Countries from the Balkans, the Black Sea region and Central Asia for instance, created a central bankers club that meets to discuss how to align their policies.

Members include Turkey, Russia, the Czech Republic, Romania, Albania and Kazakhstan, to name a few.

“We have been coordinating policy before the crisis and during the crisis, and I think it is also time now to coordinate the policies after QE3,” said Ardian Fullani, governor of the Bank of Albania.

Fed warned of global risks to tapering – Aug. 24, 2013. CNN MONEY

Fed questions keep stocks in check – Aug. 26, 2013

Posted by Ravi Gulati | Posted in Economy & Markets | Posted on 26-08-2013

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Christopher Veccio, currency analyst at DailyFX. said the Fed may taper more slowly than what the market currently expects.

But emerging economies like India, Brazil and Indonesia are especially vulnerable to changes in Fed policy. The U.S. dollar is already rising versus foreign currencies like the Brazilian real and the Indian rupee, and some investors are pulling their money out of these countries, triggering fears of a panic.

World markets were calm Monday though. European markets were relatively unchanged while he London Stock Exchange was closed for a holiday. Asian markets ended mixed.

Fed questions keep stocks in check – Aug. 26, 2013. CNN MONEY

Indian rupee hits record low before central bank lends support

Posted by Ravi Gulati | Posted in Economy & Markets, Financial Planning | Posted on 21-08-2013

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The Indian rupee fell past 64 to the U.S. dollar for the first time on Tuesday and bond yields spiked to a five-year high before the central bank stepped in to support the currency, as Asia’s third-largest economy bore the brunt of the global emerging markets selloff.

Indian rupee hits record low before central bank lends support – The Globe and Mail.

Asia Stocks Gain on Abe as Yen to Gold Jump Amid Earnings

Posted by Ravi Gulati | Posted in Economy & Markets | Posted on 21-07-2013

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Asian stocks advanced, with the regional benchmark snapping a three-day drop, after Japanese Prime Minister Shinzo Abe cemented control of the government in elections. The yen rose against its major peers and gold gained….

Abe’s Liberal Democratic Party and its coalition partner won a majority of upper house seats in the weekend vote, boosting his opportunities to stimulate the economy. Companies from Apple Inc. (AAPL) to Ford Motor Co. are set to post earnings in the U.S. this week, after more than 70 percent of S&P 500 members that have reported second-quarter results topped analyst estimates, data compiled by Bloomberg show.

Gold jumped to $1,316.20 an ounce today,…………..

Asia Stocks Gain on Abe as Yen to Gold Jump Amid Earnings – Bloomberg.