Daily FNArena News - FYI

The Dow ratcheted up another 100 points last night driven largely by GM. Bear Stearns rumours also fuelled the fire along with a very poor durable goods number.

A slew of poor economic data and profit reports sent the Dow off into negative territory last night, before everybody remembered the Fed was standing ready.

The only way seems down for US interest rates and thus also for the greenback. SVB’s senior strategist Dave Bhagat agrees, but only for the medium term.

There were economic data released last night, but there will be quite a lot more this week. After posting solid gains it was time to take some money out. The IMF also disappointed the financial sector.

Stephen Koukoulas at TD Securities suggests there is little chance of the US sliding into recession, so any rate cut cycle in coming months should be moderate as growth may surprise on the upside.

There is a raft of economic data being released in the US this week which will go some way to fuelling the argument of whether the Fed goes again. Australia takes a rest.

The Dow had added 53 points on the close to finish a tumultuous week up 2.8%.

A once stoic BoE has bowed to Gordon Brown as a result of Northern Rock, while Governor King is burnt at the stake.

Wall Street began to feel more edgy last night as the US dollar accelerated its slide against major currencies. Mixed earnings reports included a shock result from Goldman Sachs.

Positive momentum carried through on Wall Street last night. Base metals in London posted the gains they would have made yesterday had the exchange not closed before the Fed announcement.