World stock markets dropped Friday after the U.S. Federal Reserve chairman disappointed investors that there would no immediate action to jump start the world's largest economy, wiping out any gains from China's surprise interest rate cut.
By Christian Magoon:India ETF products had a positive week as the Reserve Bank of India (RBI) announced a 50bps cut to India interest rates. The size of the cut was a pleasant surprise to investors and showed an aggressive posture from the RBI. Indian interest rates had not been cut for three years as inflation concerns forced the RBI to raise rates before a plateau in later 2011. Here's a recent look back at Indian interest rates, including Tuesday's cut.
Bloomberg authors By Steve Matthews and Tom Keene report Greenspan Says U.S. Stocks ‘Very Cheap,’ Likely to Rise
Former Federal Reserve Chairman Alan Greenspan said U.S. stocks offer good value and are likely to rise as corporate earnings increase over time.
“Stocks are very cheap,” Greenspan said today at the Bloomberg Washington Summit hosted by Bloomberg Link, citing “a very low price-earnings ratio.”
The Mole submits: European bourses managed solid gains Thursday and the S&P 500 did likewise, again buoyed by the basic materials and industrials sectors. Commodity prices were generally a little firmer, as were the commodity currencies. Bond yields have backed up further, however, with the 10-year Treasury back at 3.8% for the first time since last January, with a combination of supply and inflation concerns weighing heavily.