Nov 28, 2011, 09.24 AM IST | Source: Moneycontrol.com

10 things happening around the world you should know

The US markets closed in negative territory in thin, shortened trading amid ongoing worries over the Eurozone. The Dow and S&P posted their worst Thanksgiving week since the great depression on a percentage basis.

10 things happening around the world you should know
Moneycontrol Bureau

The US markets closed in negative territory in thin, shortened trading amid ongoing worries over the Eurozone. The Dow and S&P posted their worst Thanksgiving week since the great depression on a percentage basis.

And in key data to watch out in US today, new home sales are expected to decline to 310,000 in October versus 313,000 the prior month.

European markets ended higher on Friday on bailout hopes. Reports indicate that a detailed plan to leverage up the region's bailout fund has been finalised and may face a vote tomorrow.

European finance ministers are set to vote on sweeping changes to the region's bailout fund, documents obtained by sources detail how the EFSF would be leveraged to provide it with more firepower. Among the proposals, the fund would offer personal protection to investors buying sovereign debt. Guarantees could be detacheable, therefore, could be separately traded.

Ministers also apparently want the EFSF to have about 10 billion euros available for emergency loans to governments with that cash power replenished by short term funds issued by the fund to the maximum of 20 billion euros a month.

Italian two-year government bond yields rose to new euro era highs above 8% after a weak sale of treasury-bills and zero coupon bonds and despite the European Central Bank buying debt in the secondary market. Italy issues 8 billion euros in longer-term debt on Tuesday.

And reports indicate that the IMF is preparing a 600 billion euro loan for Italy in case the country's debt crisis worsens.

Eurozone debt woes continue, as ratings agency S&P downgrades Belgium by one notch, further underscoring worries over the Eurozone debt contagion.

Euro slips to 1.33 versus the dollar. The dollar index holds firm above 79 levels. Euro has slipped over 2% since November 18.

Crude check in commodities, crude prices gain with Nymex above USD 98 levels on speculation that Europe's steps to contain its debt crisis will reduce the threat to the region's economy.

From the precious metals space, gold gains, back above 1700 dollar levels.

And back home, it was a volatile close to the week. The Nifty closed 50 points lower while the Sensex loses 160 points.

In a bid to mobilize additional resources, the Department of Disinvestment has floated a cabinet note on alternate strategies to disinvestment. Reeling under fiscal strain, the note proposes the use of surplus cash on PSU's balance sheets to meet the fiscal deficit target.

AXA, Bharti and Reliance Industries have mutually agreed to terminate their negotiations on the proposed acquisition by RIL of Bharti's shareholding of 74% in Bharti AXA Life Insurance and Bharti AXA General Insurance.

And airlines stocks will be in focus today after Fridays stellar performance. The prime minister met the airline chiefs on Saturday. Sources indicate that four issues were discussed at meet. The issues include high tax on ATF, new ground handling policy, unutilised bilaterals and high airport taxes.

Sagar Salvi
sagar.salvi@network18online.com

Click here to tune into the pre-market report by Santosh Nair, editor at moneycontrol and Shishir Asthana of Firspost.

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