Market falls back to a level close to previous bottom. A lot of market participants are waiting for the time to replenish the portfolio if market exhibits sign of support after the extended decline. Currently market sentiment is largely pessimistic. But market participants are also anxious about excessive cash holding which gives minimal return on investment. Therefore the behaviour of market participants are diverse and direction of market movement is highly sensitive to market events.
Equity stocks may exhibit random fluctuation and there are both sellers and buyers on speculation. There is probability that market may drop below previous bottom and dive further on the favor of market manipulators. On the other hands, sideline cash buying and portfolio replenishment may give support to market.
Market participants should remain cautious and follow closely on market development until a clear direction emerges.
"Disastrous" bond sale shakes confidence in Germany
A "disastrous" German bond sale on Wednesday sparked fears that Europe's debt crisis was starting to threaten even Berlin, with the leaders of the euro zone's two biggest economies still at odds over a longer-term structural solution.
The borrowing costs of almost all euro zone states, even those previously seen as safe such as France, Austria and the Netherlands, spiked in the last two weeks as panicky investors dumped paper no longer seen as risk-free.
European Commission President Jose Manuel Barroso unveiled proposals for much more intrusive oversight of euro zone countries' budgets and efforts to meet macroeconomic targets, and set out the options for introducing common euro zone bonds.
"I welcome Barroso's proposals, which are a real step forward on many points," Dutch Finance Minister Jan Kees De Jager said in a statement. "It will, however, still be an uphill battle, for there are those who resist further discipline.
"Eurobonds are not a magic solution to the current crisis and could even worsen it," he said. "We have to do first things first, and that means establishing strict supervision and enforcement of budget discipline."
IPOs stoke San Francisco housing market
Adam Holm has been looking to sell his three-bedroom Victorian house in San Francisco's Potrero Hill neighborhood all year, but he needs one thing to happen first: gaming-company Zynga's initial public offering.
The IPO-driven real estate strategy is suddenly a common one in San Francisco as companies including Zynga and the review service Yelp prepare for public offerings. With the rise of secondary share markets that enable some employees of pre-public companies such as Facebook and Twitter to cash out, moreover, even the promise of an IPO is helping to drive residential real estate activity.
San Francisco had already enjoyed a healthier housing market than most places. But the competitive bidding in some city neighborhoods recently has taken real estate professionals by surprise, with prices up more than 15 percent from last year in some areas.
San Francisco's southern neighborhoods are benefiting not just from the suddenly rich, but also from start-ups increasingly locating in the city rather than suburban Silicon Valley. Employees who like to live near work will drive up residential prices in nearby neighborhoods, the theory goes.
The renewed strength in the local housing market has caught even some who work in real estate by surprise. Stephen Rossi, who heads business-services marketing at Trulia, wanted to move out of his SOMA condo and was planning to rent it out, thinking he couldn't sell if for the roughly $760,000 he paid back in 2009.
But when a neighbor with an identical unit across the hall got multiple offers on his place and sold it in October for $800,000 to an employee at a cloud-based software company, Rossi had second thoughts. Rossi sold his condo two weeks ago to a bidder who had lost out on his neighbor's home, also for $800,000, and had backup bids of his own.
German bonds fall; stocks, euro vulnerable
German government bond yields hit their highest in nearly a month and world stocks held near 7-week lows Thursday, a day after a weak debt sale in Berlin fanned fears the euro zone debt crisis is starting to threaten its biggest > falling 115 ticks on the day to 134.66, the lowest since October 31.
"The Bund auction got people wondering about how big German debt is and it coincided with (European Commission President Jose Manuel) Barroso talking about euro bonds.
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