Today, Our markets are expected to open on a weak note. The US Federal Reserve on Sunday slashed its discount rate by 25 basis points and sought to ease the liquidity crunch further. Expectations were of a higher cut and the Fed’s decision has not gone
too well with the markets.
The Dow Jones futures are also trading low. Most of the Asian markets are down by over 3%. Dollar weakened against the Yen to 96. Fed’s action could just be an indication of how worse the credit crisis has turned out to be. There could be more pain left in the system. While indices may come crashing down at start, there is a faint hope that short covering may pare the losses.
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