Adverse Global cues with Western Markets in Europe fell flat because of Slow Growth in September, the second month running. The Weak French manufacturing data, and a decline in Manufacturing sector data for Germany triggered a slow down in Wall Street,the FTSE 100 dropped 1.4 percent to 6,676 and The EURO STOXX 50 Index, Europe's leading Blue-chip index for the Eurozone, is down to 342 down 1.4 percent.
The The Dow Jones Industrial Average showed a downward trend with a drop of 0.7 per cent to 17,056 and the S&P 500 dropped 0.6 per cent to 1,983.
Janet Yellen Fed Reserve Head has Signaled the Rate Hike Can Come Sonner than Expected and and Told the Investors to be Prepared for it, if that happens US Stocks will tank, already reeling from the new Tough laws for Checking the Corporate Inversion in which US Companies shifted their profits abroad to avoid taxes. At least Ten Companies which are in middle of Deal Making such as Burger King Deal with Tim Hortan will be Impacted because of these measures.
The Grim Situation in the World Markets is Compounded by a rapidly developing Geo-Political situation in Syria with USA-Arab Coalition Decision to go in for a strike, The Obama calling for others nation to Join in the fight with "This is not America's fight alone" can the Impact of it is set to transcend boarders.
On Asia Front HSBC Flash Data on Purchase Manager Index of 50.5 better than last month data of 50.2 has meant a strong sentiment in Chinese Market, with report showing a growing manufacturing sector, leading to a strong stock rally bucking the Global Trend of Caution and slow down. There Should be a more clarity on it once the Final Data which is set to released on 30th September. The Asian Stocks have Rebounded with Hong-Kong rising mitigating losses suffered in Australia and Japan.
The Market this week will continue to show a sluggish movement with US Home Sales Data Due in six Hours, and Annualized US GDP Data due in a couple of days, being high Impact data also on watch will be Australian RBA Governor Glenn Steve speech tomorrow in which he is expected to make major Policy Announcement.