US markets tanked when Obama won!!!

Apparently the stock markets had gambled that Republican Party would beat Obama, and that is why the US stock markets fell by around 2%.

I actually found this reaction of the market forces surprising.

America has traditionally voted its Presidents power for a second term. There are very few instances when a US President was ousted after his first term.So, I think it was surprising when the markets reacted as if they had not expected Barack Obama to win.

Some experts on the television mentioned that the markets were reacting to the fiscal deficit and other economy related challenges the newly elected President is facing, but am unable to accept this discussion.

Even Mitt Romney would have faced the same challenges. And, given the financial mess the US is in since early 2008, I don't think even he would be in a position to do anything radical to change the country's fiscal condition.

China may impose duties on US cars

China appears to be planning to impose duties on some cars imported from the United States (US). The move, being interpreted by a tit-for-tat by experts, has come after Barack Obama administration imposed duties on Chinese tires.

The duty war between the US and China is being seen as a big negative for the global automotive industry, which presently depends on China for its growth. If this duty war escalates any further it could serve as fuel to the fire, that the global economy is currently in.

Resistance to outsourcing in the United States

In a major setback for the Indian IT industry when the US government reacted against outsourcing. The Indian IT industry has been a major provider of outsourcing services for American companies over the last decade.

Earlier in August, Ted Strickland, the Governor of Ohio state set a distrubing trend by passing and executive order to ban outsourcing of government projects and now last week Barack Obama, the President of US has indicated that he too is considering steps against the outsourcing. He said he was going to withdraw tax incentives of companies who outsource work that help create employment overseas (out of the US).

Two Union Ministers Kamalnath and Anand Sharma have reacted strongly to the developments in the field of outsourcing.