Markets Trade on a Positive Note

The Global Markets emanate mixed vibes this morning. U.S. stocks rose, breaking a four- week losing streak in the Standard & Poor’s 500 Index, after Federal Reserve Chairman Ben S. Bernanke indicated the world’s largest economy isn’t deteriorating fast enough to warrant additional stimulus. European stocks fell as a report showed that the U.S. economy grew more slowly than estimated, offsetting Federal Reserve Chairman Ben S. Bernanke’s prediction that the recovery is secure in the long term. This morning Asian stocks advanced for a third day after Federal Reserve Chairman Ben S. Bernanke said the U.S. economy is slowly recovering and the central bank has more means to prop up growth if appropriate. In commodities, Oil traded near a three-day high in New York as investors speculated that growth will recover in the U.S., spurring demand in the biggest crude consumer. Gasoline slid as Tropical Storm Irene headed toward Canada. Gold fell for the first day in three after Federal Reserve Chairman Ben S. Bernanke said that growth will resume, boosting speculation the central bank may not add extra stimulus and eroding the appeal of haven investments. Copper rose, capping the first weekly gain in a month, as investors took assurance from Federal Reserve Chairman Ben S. Bernanke’s prediction that growth will resume in the U.S. Markets made a gap-up opening and were trading firm in the morning session in line with gains across Asia. Investors flocked to pick up blue chips which were battered badly in the past few weeks after political imbroglio ended over the weekend. The Nifty was trading firm at 4,864, up 116 points and the Sensex was at 16,238, up 389 points. Over the weekend, the political gridlock came to an end when the government gave into Anna Hazare’s demand on the anti-corruption bill. All the components on the Sensex were trading in the green. From the broader markets, the midcap and the small cap indices were up over 1% each. Market breadth was positive; 1362 stocks advanced for 335 declining stocks.