Daily FNArena News - FYI

The world’s second largest economy is on the brink of recession, and a strong yen is only going to exacerbate the problems. In the meantime, global commercial paper markets remain frozen.

In recent weeks the yen has had an inverse relationship with equity prices, making it a good barometer of the risk appetite for global investors.

The first day back from holidays saw a tech-led rally on Wall Street while gold has broken resistance and shot higher.

Someone has taken a US$900 million US equity bet 35-60% below the current level with three weeks duration. What does this mean?

Australia, Europe and the UK all make rate decisions this week as Sydney is locked down for APEC.

Bernanke’s statement was well received by a market assuming a rate cut will soon be forthcoming. President Bush chimed in with some added relief for mortgage holders.

In case you didn’t like my two extreme suggestions from Wednesday, BCA Research has come up with an alternative route through the current crisis.

Barclays Capital notes September is traditionally a tough month for equities and the US dollar but precious metals and the energy sector may post gains.

Wall Street struggled to decide upon last night’s GDP release while the market waits poised for tonight’s statement from the Fed chairman.

JP Morgan suggests the big five Australian banks have up to $25bn exposure to CDO-invested SIVs and conduits. What?