Its
déjà vu time for central banks in the developed world, as they ramp up
efforts to calm nervous financial markets amid mounting fears of
double-dip recession. The Bank of England surprised markets with a fresh
round of monetary stimulus despite inflation running high. ECB’s
outgoing president Jean Claude Trichet unleashed a couple of liquidity
boosting programs to relieve tension in the European credit markets.
Eurozone authorities have shown readiness to recapitalise banks.
In
the US, President Obama is trying hard to sell his jobs plan, calling
it an insurance against another recession. US Senate will vote on the
Obama jobs bill and the controversial currency bill next week. But,
before that, all eyes will be on Friday’s jobs data.
The
opening is likely to be a positive one following a three-day rally on
Wall Street and recovery in European stocks. Asian markets are in good
shape as well. The banking pack could see some buying for the day. For
our markets, the crucial event will be the RBI’s policy meeting on Oct.
25. Pressure is building on the RBI to take a pause. Corporate results
will also start pouring in shortly.
