Markets Trade on a Flat Note

The Global Markets closed and traded in red after previous day’s rally. US stocks fell, snapping a three-day rally, after jobless claims unexpectedly increased and selling in German futures sparked a rout in global equities. European stocks declined, snapping three days of gains, as Germanys DAX Index tumbled 4 percent in 15 minutes amid speculation that regulators planned to impose further restrictions on equity markets. This morning Asian stocks swung between gains and losses ahead of a speech by U.S. Federal Reserve Chairman Ben S. Bernanke at a meeting of central bankers and before reports expected to show growth is slowing in the world’s largest economy. In commodities, Crude Oil fell from a two-day high in New York, trimming the first weekly gain in five, as investors bet that signs of a slowing economy in the U.S. indicate fuel demand may falter in the biggest crude-consuming nation. Gold headed for a weekly decline, snapping its longest winning streak in more than four years, as some investors sold the metal after equities rebounded and futures margins were raised for a second time this month. Copper for delivery in three months on the London Metal Exchange fell 0.5 percent to $8,986 a metric ton, reversing earlier gains. The metal for November delivery on the Shanghai Futures Exchange rose 0.6 per cent to 67,200 Yuan ($10,510) a ton, tracking an increase of 1.8 per cent in London yesterday. Indian markets pared some of their gains and were trading flat, in line with their Asian peers, as investors avoided taking positions ahead of Ben Bernanke’s speech later in the day. The Nifty touched a high of 4,861 and was hovering around 4,849, up 9 points and the Sensex was at 16,184, up 38 points. High beta realty and metal stocks were leading the losses. Both the indices were down almost 1% each. Defensive space Healthcare was leading the gains for the second consecutive day. From the broader markets, the midcap and small cap indices were trading flat. The market breadth is positive with 984 stocks declined for 1076 stocks which advanced.