Markets Trade on a Volatile Note

The Global Markets gives out mixed clues this morning. U.S. stocks fell, giving the Standard & Poor’s 500 Index its biggest weekly drop in three months, as concern about Europe’s debt crisis intensified, speculation China will boost interest rates grew and Cisco Systems Inc.’s projection missed analysts’ estimates. European stocks posted the biggest weekly decline in six weeks amid renewed concern that some of the region’s most indebted nations will struggle to reduce their budget deficits. This morning Asian stocks fluctuated as faster than estimated growth in Japan tempered declines by commodity producers on concerns that China may be forced to lift interest rates and Ireland’s government will require European Union help to manage its debt. In commodities, Oil climbed for the first time in three days after the Japanese economy grew faster than expected, stoking speculation Asia’s fuel demand will increase. Gold rebounded from the biggest slump in four months after speculation that China may raise interest rates at the weekend proved unfounded, reigniting investment demand for the precious metal. Silver also jumped. Copper in London rebounded from its worst decline in more than four months as some investors deemed the drop as excessive as they expect supply may lag behind demand. The Indian markets trade on a volatile note this morning. The main draggers for the day are the Realty and Consumer Durables indices which trades declining more than one percentage points. Market breadth is negative with 1,372 advances against 1,401 declines. The Sensex trades in red at 20,146.18 declining 10.71 points or 0.05 percentage points. Nifty trades at 6071.05 declining by 0.60 points or 0.01 percentage points.