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Fed cuts rate by 50 basis point. Now what next?

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  #1  
Old 31st January 2008, 12:55 AM
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Default Fed cuts rate by 50 basis point. Now what next?

Fed cuts rate by 50 basis points . now what next?

Normally when fed announces rate cut, market goes high. This time fed delivered rate cut as per market expectaion. So do you see rally lasting more than week? or market will start asking for more rate cut after few days?
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Old 31st January 2008, 12:59 AM
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Default Re: Fed cuts rate by 50 basis point. Now what next?

cn any one is expecting nifty 300+ tomorrow?
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Old 31st January 2008, 01:04 AM
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Default Re: Fed cuts rate by 50 basis point. Now what next?

I don't see nifty jumping 300 points. I hope I am wrong.

Anyways When fed cuts rate you see market going higher by almost 150 - 300 points in minutes. Today market is just hovering around 100 points. Don't know whats the deal with that. Looks like market is still trying to read and understand statement given my fed.

I guess market is looking for "Is Fed ready to do more cuts? if yes then how soon? "
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Old 31st January 2008, 01:09 AM
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Default Re: Fed cuts rate by 50 basis point. Now what next?

Quote:
Originally Posted by alpesh14 View Post
I don't see nifty jumping 300 points. I hope I am wrong.

Anyways When fed cuts rate you see market going higher by almost 150 - 300 points in minutes. Today market is just hovering around 100 points. Don't know whats the deal with that. Looks like market is still trying to read and understand statement given my fed.

I guess market is looking for "Is Fed ready to do more cuts? if yes then how soon? "
indian market+asian market shud give more response than us market
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Old 31st January 2008, 01:24 AM
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Default Re: Fed cuts rate by 50 basis point. Now what next?

Lets hope so.

US market will go up in last an hour or so.

Edit. Was so wrong. Market is in erd and 7 mins for closing bell. Any idea why its in red?

Last edited by alpesh14; 31st January 2008 at 02:27 AM.
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Old 31st January 2008, 02:58 AM
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Default Re: Fed cuts rate by 50 basis point. Now what next?

Now this rate cut did US a lot of good, market down, dollar down, oil
up.. complete screw up..

I would not be long on anything, they don't even believe their own BS any
more... Sentiments of investors are veryy negative, impacts everybody..sell on rally ...time to reenter after markets settle down a more...Rate cuts prove extreme disconfidence of Feds in existing situation..
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Old 31st January 2008, 03:04 AM
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Default Re: Fed cuts rate by 50 basis point. Now what next?

Quote:
Originally Posted by alpesh14 View Post
Lets hope so.

US market will go up in last an hour or so.

Edit. Was so wrong. Market is in erd and 7 mins for closing bell. Any idea why its in red?
Most of the excitement in Wednesday's session happened in the last two hours of trading after the FOMC decided to cut both the fed funds and discount rates by 50 basis points and a CNBC report suggested downgrades of bond insurers.
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Old 31st January 2008, 08:08 AM
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Default Re: Fed cuts rate by 50 basis point. Now what next?

CNBC report of downgrading $250 Billion bond came way after market was closed.

I don't know what went wrong, but market will depend lot on friday's job report. If it comes weak then market will go down and if that comes up , market will think econom yis doing better and rate cut will help market going up.
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Old 31st January 2008, 08:16 AM
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Default Re: Fed cuts rate by 50 basis point. Now what next?

My guess is market will be back up on friday . Lot depends on result from google. Google is announcing result after hours tomorrow , if results are bad then it will drag market along with that. And job report on friday morning. So lets swait and watch.

Amazon reported expeced profit and better forecast, however just because their margin dropped shares were down 8.5% . so nowadays if you have good result market beats you and if you don't meet expectation then market will bleed you.

I expect google result to be in par or better with market expectation.

I hope indian market don't get beaten up again today.

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Quote:
Originally Posted by romanov View Post
Now this rate cut did US a lot of good, market down, dollar down, oil
up.. complete screw up..

I would not be long on anything, they don't even believe their own BS any
more... Sentiments of investors are veryy negative, impacts everybody..sell on rally ...time to reenter after markets settle down a more...Rate cuts prove extreme disconfidence of Feds in existing situation..
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  #10  
Old 31st January 2008, 10:08 AM
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Default Re: Fed cuts rate by 50 basis point. Now what next?

Quote:
Originally Posted by alpesh14 View Post
CNBC report of downgrading $250 Billion bond came way after market was closed.

I don't know what went wrong, but market will depend lot on friday's job report. If it comes weak then market will go down and if that comes up , market will think econom yis doing better and rate cut will help market going up.

rumour is that the job report shows numbers double more than that was expected for january. 120,000 jobs created by private sector while only 60,000 was expected. (approx figures)
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