The bubble in the Chinese real estate market

That housing booms can soon develop into bubbles and become a source of great risk to the economy has been amply proved by the financial crisis. Everybody knows that the crisis started with a housing boom in the US. The Chinese government certainly believes that a similar bubble has developed in its country, which is why it has cracked down hard on its real estate sector. But how big is this bubble? How far have real estate prices gone up in China? These are the questions addressed by Jing Wu, Yongheng Deng and Joseph Gyourko.

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The above article was extracted from Skyline Talent  updates of Skyline College. Skyline College is amongst the top MBA delhi and BBAinstitutes in Delhi, Gurgaon (NCR).

Wall St climbs on FedEx view, home sales data

An upbeat outlook from FedEx, coupled with encouraging home sales, lifted US stocks on Monday, keeping the S&P 500 above 1,100 for a second day and suggesting the rally could last. FedEx Corp raised its outlook, boosting its stock by 5.6%. The news from the package delivery and business services company validates the optimism of those who believe the economic recovery is less fragile than recently thought. FedEx was very real, on top of UPS (last week), so if the economy is slowing, people are still shipping a lot of stuff around for a slowing economy, said Stephen Massocca, managing director of Wedbush Morgan in San Francisco. The S&P 500 closed above the 1,100 level for the second straight session, which some investors feel is of key importance because it represented the top of a trading range the benchmark index had failed to break several times in the past month. In another milestone, the S&P 500 also rose above its 200-day moving average of 1,113.71.

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The above article was extracted from Skyline Talent  updates of Skyline College. Skyline College is amongst the top MBA delhi and BBAinstitutes in Delhi, Gurgaon (NCR).

Investors find some reassurance in Europe’s bank tests

Investors took some reassurance that European banks had passed “stress tests” on their ability to deal with a debt crisis, prompting European stock futures prices to rise on Monday. Shares rose in Asia as the worst fears about the tests were assuaged and European markets were set to follow suit with spread betters calling for British, German and French stock markets to open as much as 0.8% to 1% higher. The euro held on to its gains from Friday. But scepticism remained about the credibility of the tests because they showed a combined capital shortfall of the 91 banks put under the microscope that was much smaller than expected. On the surface, if anything, you have to take these tests with a pinch of salt, said Jonathan Cavenagh, currency strategist at Westpac, Sydney. Sovereign debt problems remain, funding constraints for their banks are still there and these have the potential to weigh on the euro. The MSCI Asia Pacific Index was up 0.5% at 11:20am. It was still down around 7% from its year-to-date high in mid-April, in part over concerns that debt defaults in the euro zone could derail the global recovery.

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The above article was extracted from Skyline Talent  updates of Skyline College. Skyline College is amongst the top MBA delhi and BBAinstitutes in Delhi, Gurgaon (NCR).

Asian stocks up as markets shrug off China data

Asian stocks rose on Monday on strong corporate earnings and shrugged off news that Chinese manufacturing shrank in July amid investor hopes that the world’s fastest growing major economy will expand strongly. The high-yielding Australian dollar rose, helped by a rise in stocks. The US dollar hit a three-month low against a basket of currencies, hurt by persistent worries that the US economy’s recovery is losing steam. HSBC’s China Purchasing Managers’ Index fell below the boom-bust line of 50 in July for the first time since the depths of the global downturn in March 2009. The index dropped to 49.4 from 50.4 in June. A figure above 50 denotes expansion. HSBC played down the drop, which coincides with signs of weakness in the United States. Although the index pointed to a month-on-month contraction in manufacturing, it was still consistent with annual growth in Chinese industrial production of 11-13 percent, HSBC said.

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The above article was extracted from Skyline Talent  updates of Skyline College. Skyline College is amongst the top MBA delhi and BBAinstitutes in Delhi, Gurgaon (NCR)

Oil nears 12-week highs; investors upbeat on commodities

Oil rose towards 12-week highs above $79 on Monday, driven by investor appetite for commodities and energy risk, with macroeconomic indicators in top consumers the United States and China showing slower but sustained growth. US September crude rose as much as 40 cents to $79.35 a barrel and was up 19 cents at $79.14 by 0415 GMT, having reached a 12-week high of $79.69 last week and climbed 4.35 per cent last month. ICE Brent gained 13 cents to $78.31.

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The above article was extracted from Skyline Talent  updates of Skyline College. Skyline College is amongst the top MBA delhi and BBAinstitutes in Delhi, Gurgaon (NCR)

Five of top 10 cos add over Rs28k cr in m-cap; MMTC leads

Five of top 10 companies added Rs28,667.55 crore to their combined market value, with public sector trading major MMTC gaining the most last week, when the benchmark Sensex fell below physchological 18,000-level after scaling it for the first time in 30 months the previous week. Trading major MMTC stole the show and jumped to the third place from earlier week’s seventh position by adding Rs24,100.25 crore to take its market capitalisation taking its total value to Rs1,74,165 crore for the week ended 30 July. During the week, it reported a nearly 34% rise in profit to Rs55.23 crore for the quarter ended 30 June.

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The above article was extracted from Skyline Talent  updates of Skyline College. Skyline College is amongst the top MBA delhi and BBAinstitutes in Delhi, Gurgaon (NCR)

FIIs inflow crosses $10 bn mark; June investment at $3.5 bn

Furtherer reposing their faith in the India growth story, overseas fund houses pumped a whopping Rs16,600 crore ($3.5 billion) into the domestic stock market in June, taking their total investment so far this year to over Rs47,690 crore ($10.4 billion). An analysis of the data available with capital markets watchdog Sebi shows that foreign institutional investors (FIIs) were gross buyers of domestic equities worth Rs60,687 crore, while they sold shares worth Rs44,070 crore, resulting in a net inflow of Rs16,617 crore in June. Significantly, a persistent inflow of overseas money also helped the BSE benchmark Sensex to regain the psychological 18,000-level last month, after struggling to scale the same for 30 long months. Though the Sensex could not sustain the 18,000 le

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The above article was extracted from Skyline Talent  updates of Skyline College. Skyline College is amongst the top MBA delhi and BBAinstitutes in Delhi, Gurgaon (NCR)