The market has had many cues that led the gap-up opening in the green today. Of course, the global cues were very supportive and the next big trigger that the market is watching out for is the European Union Summit that will be held on December 9.
Even the Asian markets this morning have had a big fillip, and China has taken quite an important step to encourage banks to resume lending by reducing the CRR. They have reversed their yearly long strategy to alleviate the inter-bank stress.
Jason Hughes of IG Markets spoke to CNBC-TV18 on his views about the implications and the way forward for global markets from here on. Below is the edited transcript of the interview. Also watch the accompanying video
Q: What has your reaction been to this Central Bank coordinated action that we have got in overnight and the fillip that we have seen in global markets?
A: Lot of investors were probably a bit surprised by the action that was taken overnight and we are seeing people perhaps being squeezed down of their short positions on the basis of this. It is a great shot in the arm for the market to see that a number of Central Banks are working together to improve liquidity in the European region which had become a bit of a concern with rates rising, liquidity between the banks almost freezing up. Realistically, it
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