China and Apple Both Get Rocked

The major stock market indexes in the United States were closed today for the Martin Luther King holiday. Despite the stock market being closed it does not mean that a lot of pivotal action has not taken place around the financial world. This weekend the People's Bank of China(Chinese central bank) raised bank reserves by another 50 basis points. This is the fourth increase in bank reserves in just eight weeks. China has only increased actual interest rates by 25 basis points once over the past year. It is important to note that China and most of Asia are now facing very high inflation. China is also raising bank reserves to try and fend off an extremely hot real estate market. Traders should now keep a close eye on the iShares FTSE/Xinhua China 25 ETFFXI as it could come under pressure when the markets open in the U.S. tomorrow morning. Last night the Shanghai Index closed lower by 3.03 percent. Apple Inc.AAPL Chief Executive Officer, Steve Jobs, said he will be taking a leave of absence for medical reasons. Two years ago Steve Jobs temporarily stepped down from the position to undergo a liver transplant. Apple Inc. stock is currently trading at an all time high of $348.48 a share as of the close on January 14, 2011. Apple Inc. now has the second largest market capitalization in the stock market at $321 billion and only trails behind Exxon Mobil Corp.XOM which is $392 billion. The last time that Steve Jobs took a medical leave the stock suffered briefly before rebounding. Apple Inc. is scheduled to report earnings on January 18, 2011 after the closing bell. Shares in the tech giant could be under pressure tomorrow when trading resumes in the Unites States. Nicholas Santiago InTheMoneyStocks.com