Economic Analysys by Maurice Gitau

This analysis is done by Maurice Gitau. I impress with the detail so I decided to put it here. Enjoy.

"On a money note – stock markets have rallied hard today since most economists expect the US bank stress test result to be released today will be positive showing the US 19 largest banks are not in danger of collapse should the econ worsen. Nikkei close 4% up plus a number of Asian markets, Europe markets picked up from where Asia left and have been up most of the day. However, the open in the US markets has steamed down due to increase jobless claims for Q1, analysts had estimated a reduction. Also some tech companies reporting Q1 results today posted losses with SiriusXM (Satellite Radio Company) stocks hitting 10% down! Also microchips firms are down. So Nasdaq and Dow jones losses are currenly stalling the rally up. However, oil is heading up towards $60/barrel…! I think at this level it is totally overbought and a correction back to $50 is on the cards. When oil reverses, most global commodity stocks also follow its trend. So in forex, selling Aussie $, New Zealand $ and Euro against the US $ has the possibility of making some good cash. If the US closes down, then I expect Asia to sell off tomorrow too. And I’m hoping that the bank stress results are positive. Otherwise the selloff will be big on US financial stocks (S&P 500) which automatically will have a knock on effect to the other global markets."