Current situation of equity market

Equity markets in Asia are trading on weak momentum, followed by European and US markets' hardly managed position just above the break-even point. The electronic makers have been the biggest gainer in Asian markets. It seems that global economy is going towards betterment. This is the fourth consecutive day of advancement helped by the small gains of last day. Australian economy expanded by 0.4% in the first quarter, which resulted in additional positive momentum during the Asian session. Australian economy is the only economy that grows in the first quarter of the year.

On Tuesday, every industrial sector of the United State's equity market saw limited movement after the announcement of the U.S. President Mr. Obama to re organize the healthcare industry, which made the health care industry the only industry which grew in the United States.

As soon as JP Morgan and American Express hit the equity market for additional cash, this resulted in the biggest declines of the financial market on Tuesday. American Express fell by 4.9%, sold $500 million in new shares, while JP Morgan lost 4.5% after it sold $5 billion worth of new shares. It is expected that other banks will also be forced to do the same and raise money from the equity markets to meet the targets, which might reduce the current shareholder's percentage.

The rise in pending home sales has reached its peak of seven years, which resulted in huge decline in real estate sector. It is expected to be worsening in future. Prices continue to fall, unemployment is rising, and the recessionary period is sufficient to put pressure on financial institutions.

Institutions are having difficulties to build momentum because traders are fast enough to take any available short term gains they have earned in equity market, and this situation is expected to be worsening in immediate future.

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