Daily FNArena News - FYI

Last night the ECB made a startling move by injecting E95bn into the banking system as BNP Paribas froze three hedge funds through lack of liquidity. The Dow fell 387 points.

With 40% of total exports coming from soft commodities a positive outlook for meat, forestry and dairy prices Macquarie suggests New Zealand’s GDP growth will continue to be solid.

The Dow rose 153 points last night, but it wasn’t all smooth sailing.

Weekly musings from your editor. This week he shares some thoughts about a meeting with two experts out of the FNArena database of readers.

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.