Daily FNArena News - FYI

US bonds bounced back over 5.25% last night putting the frighteners through Wall Street once again. Nickel found a vacuum.

It’s been a common mantra for a couple of years now, but predictions of the inevitable collapse of the world’s reserve currency are gaining currency in all corners of the globe.

Inflation fears sparked the sell off on Wall Street last week, and this week brings US PPI and CPI data. Things are relatively quiet in Australia until the RBA governor speaks on Thursday.

Friday night saw a strong pullback in US stock markets while last night closed flat. Gold crashed under US$650/oz on Friday but managed a rally back to safety last night.

It’s just speculation, but Bell Potter’s Peter Quinton believes the Chinese government may be sizing up the world’s largest mining company.

Selling in US bonds overnight saw yields trade over the hoodoo 5% level, sending equities and metals well into the red.

Morgan Stanley’s global strategists have advised clients to slash equity positions following a triple warning signal on its indicators – the first since the dotcom bust.

After a wobbly Tuesday, Wall Street suffered a decidedly weak Wednesday following higher than expected unit labour costs. A warning for Australia?

Weekly musings from your editor.

Another 8.3% fall in the Shanghai Composite yesterday failed to have any significant ramifications for equity markets around the globe. Is the China threat now considered benign?