6 Mar 2012: Markets bearish, India bans cotton exports

  • Stocks weighed down by growth concerns, Commodities attract sellers
  • Monday’s left-over negative sentiment about global growth, and the oil shock sees significant bearish trends in the market today. Traders are wary of the massive consequences should the Greek deal fail at the last possible moment, causing selling trends. I expect a slight recovery very late in the trading day!

    • Stocks: FTSE All World is down for the 3rd consecutive session by 0.8%; FTSE Eurofirst is down 1.2%; S&P 500 expected to open 0.8% lower; FTSE 100 is down 1.04%, and is at 5813
    • Currencies: Euro dips to $1.3173
    • Commodities: Brent Crude falls, but performs better than peers and is at $123.23/barrel; Copper is down by almost 1.5% to $3.80/pound; Gold also is down 0.9% $1691/ounce
  • Regulators consider overhaul of LIBOR
    • The rethink is meant to take into account, regulatory changes such as the planned imposition of the global bank liquidity requirements in 2015
    • Some of the contributing banks said that this could overhaul everything, from changing how LIBOR rates are set to compliance and regulatory requirements
    • Currently LIBOR is set under the protection of the BBA; Panels of Banks report their estimates of unsecured borrowing rates over 15 different time periods, and these are used by Thomson Reuters to calculate daily LIBOR
  • Other news, briefly
  • India bans Cotton export: India, the second largest Cotton producer in the world has banned Cotton exports again this year. China, the largest Cotton consumer in the world, had recently bought 5m bales of cotton for its reserve. India described this as a tendency of ‘hoarding’ in warehouses
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