Daily FNArena News - FYI

Markets have settled since the US Federal Reserve lowered its discount rate but Danske Bank suggests it is still too early to re-establish carry trade positions.

The New Zealand dollar has fallen as investors exit the carry trade but Macquarie Equities sees little economic fallout from the change in investor attitude to risk.

Bank of America announced a US$2bn investment in embattled US mortgage lender Countrywide after market, sending Countrywide’s shares soaring.

Stocks went up and bonds went down last night as a seized credit market began to see the first signs of movement.

Weekly musings by your editor. This week he looks into positive and negative earnings surprises in the August results season thus far.

Panic gave way to simple anxiety on Wall Street last night as the only news of any consequence was a fall in the oil price.

The Australian branch of the Alternative Investment Management Association released its latest guidelines for hedge fund disclosure on August 16, in an unfortunate bit of timing.

Mixed, with a lack of conviction, is the way last night’s trading US stock markets could be described as the Dow recovered early losses to finish higher. We are now playing a waiting game.

Comparisons with 1998, and a quick look at the upcoming mortgage reset situation in the US, suggest today’s rally hasn’t necessarily marked a bottom.

This week is virtually devoid of data from the US, which might be a good thing, while Australia is not laden either, but this is Week one of the two busiest results weeks.