Market update 24.11.09

Oil was hammered on the back of GDP nos. from the US. The QoQ growth came at 2.8% but the previous no. was revised lower from the one reported earlier. US economy's slower expansion has caused concern whether the recovery is strong enough. The weakness in the labour market, high unemployment rates (10%) is keeping Fed reserve Chairman to keep interest rates low to near zero levels, and with lame inflation nos. - there is very little chance that we might see an upward move in interest rates in the near future. With zero interest rates, the carry trade is further fuelling dollar weakness and causing EM economies to rise - stocks are rallying less on fundamentals and more because of lack of alternatives for capital to flow