U.S Fed cut interest rates for third time; Stocks Plunged

The Federal Reserve cut the interest rate today by a quarter of a percentage point, to 4.25 percent, although it was expected to be a bigger cut than this. This had a massive impact on almost all the stocks; however the Treasury bonds prices rose. “A mild recession is now likely, with no growth for the year ahead,” Richard Berner, chief domestic economist at Morgan and Stanley declared in a report to clients this week.

The U.S. Stocks were hit by the rate cuts, the Fed’s move slumped the Dow Jones Industrial Average Index to 2.14 percent. And the S&P 500 Index saw a decline by 38.31 or 2.53 percent, to 1,477.65 at close time.

The U.K‘s benchmark FTSE 100 Index fell by 0.43, to 6,536.90 at 10.00 a.m. in London with the Germany's benchmark stock index the DAX Index declining to 0.3 percent.

The Asian stock market also showed a down slope with the Japanese stocks falling high after the Federal Reserve cut interest rates by a quarter points. This disappointed the Asian investors at large. The Nikkei 225 declined by 112.46, or 0.7 percent, to 15,932.26 at the close of trading in Tokyo. Of the index's 225 stocks, 73 rose and 140 declined and 12 were unchanged.

However the fact is very clear that the U.S Fed rate cuts have largely influenced the stocks and any rate cuts further would bring them even down. But the Bond market is flying high with investors showing much interest towards them rather than the stocks. In future may be the Bonds, the Commodities and the currencies will be at higher end.

Why do politics affect Stock Markets?

Although politics and Stock Markets are different in their own functionality, are seen related in some or the other way. Every time when there are some changes in the political issues in any country it right away shows its influence on the National market. Last week the China’s benchmark stock index broke the symbolic 6,000-point mark for the first time ever. Know the reason why? One of the major reasons was the opening up of the 17th Communist Party Congress in Beijing by the nation’s top leaders. In one of the surveys conducted by a website, among the states of U.S, found that the economy reflects the position of the political parties in elections. Many more symbolic events have taken place in the history of stock markets of different countries on political basis. It seems that economy and politics go hand in hand.

The reason why? To a certain extent, it is observed that political uncertainty has a bigger impact on the stock markets than the performance of the economy. The reason for this may be that “for any economy to grow and prosper, it needs policies and reform measures that will be fruitful only over a long term implementation”. Overall, the direction of policies has been clear when there is a stable government. Be it, simplifying tax structures (direct and indirect), foreign direct investment policies, strengthening the financial system, government spending and reforms in public infrastructure and utilities. Investors feel that a stable political situation at the Centre is always beneficial for them. Since economy touches the life of each one of us in one way or the other, it becomes important for us to have our part in choosing the party that rules the state. Thus it’s interesting to see how...Politics influence world markets and economy impacts political stability!

Satellite Trading

Online trading is one of the zippiest things that are happening on the Net-today. Based on the technological aspects and also the growth pace, it would be appropriate to say “online trading “as “satellite trading”. The speed factors and the hi-tech factors of a satellite are almost same when it is compared to the rapid growth of online trading. I have been to some of the finance trading sites online, and I found them quite interesting and unique in their own way. These sites offer good promotions, security features and easy access for their customers. The hard part of it was that, these trading sites are being ranked by some, based on their analysis. The most horrible thing is that they are trying to analyze websites that are unique in their own way. Having some similarities doesn’t mean that they are same. This sense is a must for all those, who try to mix up their opinions and throw it on the audience in one way or the other. It is better for people to judge for themselves as to which trading site is suitable for them depending on their compatibility .Its good to give views on these websites but not rank them accordingly.

The stock market trading is almost rocking part of online trading. Some sites online, are working in a better way to help their customers trade better. One of the upcoming sites online is Gnutrade.com. Its security and help features are the most interesting part of it. This website has a good GUI interface that helps the customers to play the trade with just a “click”, Provide the ID and password and just a “click “and a “click “you are on the trading game page. Its good that we have something like this online, which has no “jumping of pages”, otherwise, by the time we reach the game page, we loose almost all the patience. All the features are just a click away!

The learning center is awesome which covers every nook and corner information about the website.Once you enter this learning center the “baby” players, become almost like “teen “players. All the usage features, the financial markets and their trends, market talks, FAQ’s are listed out clearly. The visual display of each and everything makes it clear for anyone…. and everyone….The trading page is visually setup with all the “understandable -icons” on them. There is no need of any calculations or mugging up of numbers, just a “click and a click” you will be given choice to bet on any stock market. There is no horror of loosing money….coz this site provides its users with play money to acquaint them with it methods and trading methods as well. The variety of betting, the up-to -date stock price information, arrangement of windows with clear information of account balance, loss and gain is terrific.

The security features are level headed, with proper maintenance. The site hosts a helpdesk that is polite and available to help their customers 24/7. All the E-mails, queries are resolved in hours. To make this site more interactive, it even has a “chat feature” that enables customers to be connected.

These are just some features almost “less explained”, this site is advisable for “baby players”, “teen players” “adult players” and “old players” (highly experienced)………so who are left????????...........no one …….its impossible for anyone to say ….”No” …to play the trade game on this site. For the people who have not been to this site just click on GNUTRADE and you are there, right on the home page of the site, I was explaining all the way.

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