Daily FNArena News - FYI

It was a case of bad news can be good news on Wall Street as the Fed decided not to ease rates in the face of the credit crunch. The Dow pulled back losses to be up 35 points.

I was the biggest up-tick since October 2002, but traders remained unconvinced of the integrity of last night’s rally. Oil finally tipped over.

Earnings guidance for FY08 has been cut and most of the market now sees little reason to be in Telecom New Zealand given ongoing regulatory issues and competitive pressures.

The Fed will do nothing on Tuesday and the RBA will hike on Wednesday if consensus expectations are accurate. The Australian results season steps up a gear.

Weak jobs data set the market off again as a US mortgage lender went under and Bear Stearns fuelled the pessimism.

The Dow posted its second consecutive rally last night – the first time it has put two up-days together in three weeks.

Wall Street traders could be forgiven for feeling nauseous at day’s end following a session dominated by extreme volatility, culminating in a strong rally in the final twenty minutes.

Weekly musings by your editor. Is the cancer within the global financial system to bring a bear market upon us?

Early strength on Wall Street was killed off last night as a large mortgage lender announced trouble and the Fed declared the market was on its own.

While the bulls are looking for attractive value the bears have really come out to play.