The stimulus in US seems to be just not working and that the US economy is heading back into recession.
People are basically fearing for global economic slowdown again due to recent economic weak data. Jobless claims on Thursday morning showed large number of American are unemployed and that unemployment rate is not going to reduce anytime soon from 9.2%.
Investors on Wall Street are waiting for Friday’s jobs report. Japan's government has stepped in to weaken the yen, and the European Central Bank has decided to re-enter the European bond markets for the first time since March 2011.
All the three major indexes plunged more than 4% today and entered into 'correction' territory which is defined as a 10% drop from recent highs. The Dow, Nasdaq and S&P 500 are down more than 10% from their mid-July highs now.
The market’s fear gauge was indicating 30.5 which is high degree of fear!
Looking at these developments, where do you think Indian stock markets on Friday would head? Southwards is the only answer comes to my mind. And if they follow the same path of 4%, we could see the SENSEX around 17000 mark today!
