US Economic growth skids to 5 year low

sharmaji · #1 30th January 2008, 08:18 PM

http://www.cnbc.com/id/22912296

0.6% in the fourth quarter, analysts were expecting 1.2 %.

The lackluster fourth quarter performance followed a booming third quarter when GDP surged at a 4.9 percent rate and is likely to fuel fears the economy is at risk of tumbling into recession in 2008.

Feds will be meeting for rate cut today, market is expecting 50bps, anything less than that is not enough.

Seems tomorrow markets will go down again..

ratan jain · #2 30th January 2008, 08:23 PM

Aapke muh mein motichoor ke laddu

anjubhatia · #3 30th January 2008, 08:44 PM

Quote:

Originally Posted by ratan jain

Aapke muh mein motichoor ke laddu

ratan,
either u hv short in nifty or u were kidding wid sharmaji

sharmaji · #4 30th January 2008, 09:17 PM

Quote:

Originally Posted by anjubhatia

ratan,
either u hv short in nifty or u were kidding wid sharmaji

who is kidding with me?? kaun hai?? (Just joking )

Yeah it seems Ratan is short on Nifty thats why he is so happy

fizzler · #5 30th January 2008, 09:20 PM

strangely it seems that our market is reacting to US slowdown more strongly than US markets.....

sharmaji · #6 30th January 2008, 09:32 PM

that is true and if fed rate cut is not with market expectations then I expect further fall tomorrow..

alpesh14 · #7 30th January 2008, 09:42 PM

Most likely fed will cut 50 basis poin. However u never now. It might be just 25 basis point and statement that we will act as soon as we feel rate cut is needed.

As USA's GDP grew by just 0.6%. I guess he will give last shot with 50 basis point and see what happens. My thoughts are just give what market is expecting or give nothing . because 25 basis point will disappoint market and nothing will disappoint them bit more.

sharmaji · #8 30th January 2008, 09:56 PM

Quote:

Originally Posted by alpesh14

Most likely fed will cut 50 basis poin. However u never now. It might be just 25 basis point and statement that we will act as soon as we feel rate cut is needed.

As USA's GDP grew by just 0.6%. I guess he will give last shot with 50 basis point and see what happens. My thoughts are just give what market is expecting or give nothing . because 25 basis point will disappoint market and nothing will disappoint them bit more.

so do you guys think sensex will rise if feds cut rates by 50bps or more and fall if rate cut is just 25 bps or less?

alpesh14 · #9 30th January 2008, 11:03 PM

Yes it will

manafa · #10 30th January 2008, 11:22 PM

Quote:

Originally Posted by fizzler

strangely it seems that our market is reacting to US slowdown more strongly than US markets.....

I think the reaction is a chain of events. FIIs are pulling out on fear of US recession and global reaction, Mutual Funds are following FIIS and the retail investor .... well the poor guy is just plain scared of entering the market. Hopefully this cycle breaks soon.

Happy Trading