A mixed trend was seen across the global markets as the Asian and U. S. stock market started & ended positively. On the other hand, due to the strikes and weak economic scenario in Europe, the European Stock market displayed a downward trend. With Cisco’s September sales crossing all expectations and reforms to take care of “fiscal cliff”, Wall Street opened with a higher value. Dow Jones gained 0.2% (to 12,778) and similar % gain was seen on S&P 500, which took it to 1,377.32.
The present economic scenario in the U. S. and thus elsewhere too is mainly and largely revolving around the “fiscal cliff”. The increase in tax and spending cuts will naturally affect the economy badly unless the government reach to a timely solution. The U. S. Lawmakers so far have been able to convince the industrialists, traders and businessmen that a compromise before the deadline will take place. This is evident in the performance of the stock exchange.
European economic scene, on the other hand, does not look promising. Recent data reveals that overall industrial output in many European countries have gone down as much as by 2.5% in September. Union strikes and transportation strikes across Europe are also affecting the European economy. All over Europe, the stock exchanges have shown a downward trend, FTSE in U. K. went down by 0.5% (5756.66), DAX Germany lowered by 0.3% (7146.73) and CAC-40 France fell to 3421.33(down by 0.3%)
The present downward plunge in Eurozone’s industrial output is expected to be continued in near future and may hit the bottom in 2013. Thus European stock market situation seems to remain in the downward trend for some more time.
The Asian stock market situation is in quite a stable phase presently. With President Hu Jintao making way for Vice President Xi Jinping to assume the leadership in China, the analysts are sure that economy will grow stronger. In Hong Kong, Hang Seng gained 1.2% and reached to 21441.99, the Shanghai stock exchange consolidated its position at 2055.42 (up by 0.4%). The Japanese and Shenzen indexes also have gained.
The stock markets have also shown marginal gains, Australian S&P and ASX 200 ended at 4388.40 (up by 0.2%). In South Korea, Kospi ended at 1894.04( a gain of 0.2%).
Though the dollar gained more than a per cent against the Yen (80.30 from 79.41), the Euro grew stronger against the dollar by 0.3% to 1.2745 from 1.2704.