Daily FNArena News - FYI

Weekly musings from your editor. Prepare for earnings estimates and price targets to drop as securities analysts adjust to the post-correction new reality.

Wall Street saw what happened in the rest of the world and opened the Dow down 464 points. But the Fed decided to make an emergency rate cut of 75 basis points and the Dow came racing back.

Don’t be fooled by any “value opportunities”, says Dennis Gartman. Resist to buy, even in case of a rally following the panic wave.

Stocks in Asia, Europe and elsewhere suffered huge falls yesterday and overnight as all confidence is lost in the financial sector and the Bush rescue package is seen as inadequate.

Global inflation is poised to regain centre stage this week. The US calendar is light.

Investors banking on a relief rally the coming week be warned: there might be a nasty surprise in store still.

ANZ’s overview of businesses in Australia shows continued growth in output, but rising cost pressures suggests profitability has peaked this cycle.

According to CBA economist Michael Blythe there is a chance investors are overplaying the fears of a US downturn as while the short-term outlook remains tough a recession is no certainty.

Weekly musings from your editor. If the trend is no longer investors’ friend, what should they do instead?

US shares have staged the rally that was believed to be overdue, but headwinds remain, according to strategists at BCA Research.