Daily Market Review 20 of November
Wall street climbed nearly 2 percent  yesterday thanks to expectations that U.S. Congress will reach a compromise to avoid $600 billion in tax increases and spending cuts due to start in January - the 'fiscal cliff' that threatens to derail the U.S. economy.

Despite the positive sentiment in the markets, ratings agency Fitch did warned that failure to reach a deal on the 'fiscal cliff' could trigger a recession and push the U.S. jobless rate above 10 percent.

Fitch wasn’t the only rating agency that made the headlines yesterday, Moody's cut France's government bond rating to Aa1 and keep its negative outlook, citing the country's uncertain fiscal outlook and deteriorating economic prospects.

At the open of the session today, Shanghai shares fell another 0.5 percent to their lowest since early 2009, after data showed China's foreign direct investment inflows fell 3.45 percent in the first 10 months of 2012 from a year ago. The rest of the region markets traded mix.

The Bank of Japan decided to keep its benchmark interest rate unchanged and made no changes to the size of its asset-purchase program, it announced on last week. This decision was largely expected therefore it had little effect on the markets.

In Europe today, the highly anticipated Euro zone finance ministers meeting regarding the crucial financial aid to Greece will take place. In this meeting they are expected to give a green light for the disbursement of 44 billion Euros in emergency loans to Greece at and to discuss how to reduce Greek debt and provide two extra years of external financing to help Athens meet its fiscal target.

The US Fed chairman Bernanke is expected to speak today at 1715GMT and address question regarding the strength of the US economy and its Job market. He is also expected to speak about the “Fiscal Cliff’ and the side effects to the economy incase a compromise hasn’t met.

the crude oil surge in the last few day following tensions in the Middle east after Israel launched a military offensive against Palestinian militants in Gaza that killed a Hamas military leader. This reaction by the Israeli forces came after a massive rocket attacks lead by the Palestinian militant that targeted civilians.

Even though the asset has break thorough the downtrend we don’t believe it will hold and we expect it to continue its decline after the Middle East tension ease.