Daily FNArena News - FYI

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.

Danske Bank remains positive on the outlook for the global economy over the next 12-18 months, though it sees upside risk to interest rates.

When FNArena speaks, the world listens.

Weekly musings from your editor.

There were no particular industry sectors popping corks last night, and the RBA should not be too concerned. But what else is in store before the election?