Daily FNArena News - FYI

It may prove largely symbolic, but trade talks between the US and China midweek will be closely watched in a week otherwise largely devoid of data on either side of the Pacific.

Parts of Australia have enjoyed some winter rains but National Australia Bank suggests conditions remain tough for the agricultural sector and more rain is needed to boost winter crops.

Three billionaires flexed their buying muscles on the Street last night, overriding mixed economic data. A rally in the US dollar saw gold breach the important US$665/oz level.

Weekly musings from your editor.

The Dow was up 134 points in early trade on a small CPI rise, but lost nearly 100 points of that gain later in the session.

The US economy is slowing but global economic conditions have improved from last year, so the environment for riskier assets remains positive.

So awash with cash is the world, looking for a place to invest, that hedge funds have sprung up in more and more diverse and exotic investment areas – art, wine, even football players.

The Dow bounced back over 100 points on Friday, deciding that Thursday’s sell off was overdone and the PPI was enough reason to buy.

With the Government’s Future Fund looking likely to be fully funded, the issue of broadening its scope to invest in other areas should become a point of debate leading into this year’s election.

A pullback in the Dow is no great surprise but the gold market had become just too long.