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According to Richard Gibbs of Macquarie Securities reduced crude prices goes in favour of the Indian economy and gives RBI a scope for monetary accommodation Richard Gibbs Global HD, Macquarie More about the Expert Richard Gibbs, Global Head of Macquarie Securities is upbeat on India because he thinks there is room for structural expansion and the demand is much better than anywhere else in the world. According to him reduced crude prices goes in favour of the Indian economy and gives RBI a scope for monetary accommodation. It is also likely to produce some tailwind for the global economy. "It certainly provides latitude on the trade side but also in terms of the inflation side for the economy as well." The house remains a buyer on India. What is the sense you are getting. Are we now facing a fairly big challenge to global growth and therefore are risk assets going to head lower? A: I think the International Monetary Fund (IMF) is articulating that fairly well as we move into the IMF World Bank annual meeting in the next few days. It really is a case where the US is I suppose the best if you see IMF's parlance and that's for investors who have been searching for growth is a disappointment. So, now I suspect we are going to have people turning back towards in search for yield and that has become difficult as well with the expansion in quantitative easing measures around the world but most particularly by the European Central Bank of course. At the end of the day lower crude prices are probably growth positive and the issue there is whether they pertaining further disinflationary pressure/deflationary pressure in the major economies. Certainly for an economy like India, cooling in crude prices is a positive. It certainly provides latitude on the trade side but also in terms of the inflation side for the economy as well. It's a bit of a two-edged sword as I suppose in that sense but overall lower crude prices are likely to produce some tailwind for the global eco

Currently, the global stainless steel industry is going through difficult times, as prices of raw materials are increasing on one hand, and at the same time demand has been on a declining trend. Profitability of both manufacturers and traders of pipes and plate products have reduced significantly compared to the past two years. I have been speaking to many traders of pipes, plates and fittings about their business conditions and the most common answer I get is "Current business is even worse than what we experienced in the recession of 2008". It is not just the case with European or US manufacturers of stainless steel products, the effects of declining demand is being even faced by Chinese and Asian manufacturers. Nickel and ferro chrome prices are the driving factor for determining prices of stainless steel products. While, Nickel prices on the London Metal Exchange have been very volatile, ferro chrome prices have been recently increased by 12.5% by miners across economies. On account of an increase in ferro chrome prices, some manufacturers have already announced an increase in prices, while others are planning to increase the prices. Stockholders and buyers of products such as stainless steel sheets, plates, pipes, bars, fittings and flanges have been become highly risk averse and cautious while placing purchase orders with mills, especially in case of Asian stock holders who import these products from Chinese or Indian mills. The global speculation activity in metals has had a major impact on the buying patterns of consumers in Asian economies. Going forward, we expect the market to remain lack luster, with buyers staying on the back seat and purchasing in smaller quantities, to avoid major losses due to fluctuations in prices of Nickel and other raw materials. Although prices in the Indian market have remained stable, but selling big quantities of stainless steel plates, pipes and fittings has become difficult because of the risk averse attitude of traders

Concerns of a slowdown in the Chinese economy led to a selloff in major base metals including copper, aluminium and nickel. Even precious metals such as gold and silver were not spared. The key question is who to trust at times when gold is also on a freefall. This week global financial markets started with another round of selling, as investors turned risk averse following disappointing Chinese economic data. The Chinese Economy grew 7.7% during the first quarter of 2013, compared to the same period last year, missing economists' expectations of 8% growth. Growth also slowed compared to the last quarter of 2012, when it stood at 7.9%, raising expectations of a slowdown in the Chinese economy, which is a bearish signal for the global financial markets, especially base metals. Growth in Chinese industrial production also disappointed, with a reading of year on year growth of 8.9% in March compared to a 9.9% growth recorded in the previous month. Markets were expecting a growth of 10.0 year on year. Traders had expected China to post better results, as consumer spending had improved and Chinese government had also infused liquidity in the domestic financial system to aid growth. We expect the Chinese government to avoid a monetary tightening policy to aid growth in the coming months. Nickel prices were trading at around USD 15,500 / metric ton down around USD350 compared to the closing on Friday. The fall in nickel prices and weak Chinese economic data has come as a surprise to many stainless steel users and stockholders in emerging economies, as they had made material bookings for stainless steel seamless pipes, Stainless Steel Pipe Fittings and stainless steel strips in the last week,. They had anticipated Nickel prices of USD16000 / metric ton as bottom pric

Game's on if European leaders plan to avoid a crippling meltdown. No recession likely unless Europe's problems cross the pond. ECB to the rescue ?

The European leaders are now talking a long-term solution that would free up banks to lend, economies to grow and stocks to soar. Stay tuned.

News that the Greek government will put the European bailout plan to a referendum, prompting major losses across the financial sector as European banks and ETFs tumbled.

Already exporters are not able to draw enough demand for goods from the key export markets due to the massive financial slowdown, which has hurt many big economies adversely in the last one year. In addition, the unprecedented four-day shutdown of European airspace continued to wreak havoc, as the volcano near the Eyjafjallajoekull glacier in southern Iceland went on spewing ash and many countries have either canceled, delayed or extended bans on flights.

With pockets full of cash, China has more leverage than ever over European governments and businesses. What does greater Chinese influence mean for European businesses and culture?

The U.S. economy is gaining traction, unemployment rate drops to 8.6%. Europeans may finally agree to a framework to address woes next week - bullish.

Can tariffs on foreign imports really save the U.S. economy? In this edition of his financial myths series, Michael McTague breaks down this idea.

Looks like a successful summit. While uncertainties linger, the Europeans have a framework for solving problems. Profit-taking could set up a buying opportunity.

A decision by European leaders to address bank and sovereign debt issues is expected in a matter of days. "IF" they can do it, we have a breakout !

The European crisis is in remission and U.S. economy gaining traction, but many stocks need a correction consolidation after big moves up making a correction likely.

Progress was made by European leaders over the weekend, but definitive plans are not expected until Wednesday. Investors should expect volatility until then

Rebound is a response to stronger than expected U.S. economic data. European Uncertainties need clarification. Resistance starts DJIA 11,960 (S&P 500: 1226).

Finally, the stock market is getting a boost from Europe as its leaders are acting to head off the dissolution of the EU. DJIA 11,750 (S&P 500: 1214) possible.

Threats that 15 eurozone nations, including Germany and France, as well as the EFSF could have their credit downgraded by S&P led to a tepid day of trading.

Urgency is growing in Europe to come to an agreement, but so far investors do not seem worried. The market has traded back and forth over the past few weeks on each Europe rumor.

The second ECB rate cut in five weeks was a modest one, but signals the intent of European policy makers to help the struggling economy in the face of a mounting debt crisis.

Greece has reached an agreement with the International Monetary Fund (IMF) and the European Union (EU) on a $159 billion rescue package for the debt-laden country.