World Stock Markets- News all need to know

David Fuller (Fullermoney): China’s and India’s stock markets attractive for long term“I have often referred to China and India as the king and queen of emerging markets, for their current and especially long-term growth potential. China’s A-Share valuations, which the government has gently deflated somewhat since the peak, reflect not only earnings growth but also China’s high savings rate and very limited access to other stock markets. India’s appeal is also earnings growth, which is currently seen as more secure since exports account for only 15% of GDP. In theory, the Indian economy is less susceptible to the US economic slowdown.
“My view is that China’s and India’s stock markets will inevitably be volatile from time to, for all the usual reasons, but remain extremely attractive for the long term. I have no intention of reducing my holdings in these markets but have often said that I prefer to buy following setbacks. Currently, of the two this only applies to China.”
Source: David Fuller, Fullermoney, January 10, 2008.

Asha Bangalore (Northern Trust): FOMC is ready to ease monetary policy 50 basis points“Chairman Bernanke was crystal clear about the near term direction of monetary policy when he concluded his remarks with the following: ‘However, in light of recent changes in the outlook for and the risks to growth, additional policy easing may well be necessary. The Committee will, of course, be carefully evaluating incoming information bearing on the economic outlook. Based on that evaluation, and consistent with our dual mandate, we stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks.’
“These transparent comments have raised the probability of a 50 bps cut in the federal funds on January 30 to a nearly certain situation and movements in the federal funds futures market reflect this scenario.”
Source: Asha Bangalore, Northern Trust – Daily Global Commentary, January 10, 2008

Ambrose Evans-Pritchard (Telegraph): Bush convenes Plunge Protection Team“Bears beware. The New Deal of 2008 is in the works. The US Treasury is about to shower households with rebate cheques to head off a full-blown slump, and save the Bush presidency. On Friday, Mr Bush convened the so-called Plunge Protection Team for its first known meeting in the Oval Office. The black arts unit – officially the President’s Working Group on Financial Markets – was created after the 1987 crash.
“It appears to have powers to support the markets in a crisis with a host of instruments, mostly by through buying futures contracts on the stock indexes and key credit levers. And it has the means to fry ‘short’ traders in the hottest of oils.
“The team is led by Treasury chief Hank Paulson, ex-Goldman Sachs, a man with a nose for market psychology, and includes Fed chairman Ben Bernanke and the key exchange regulators.