Base Metals and Minerals

Wall Street action was all after the bell this morning as Bear Stearns announced its funds at the centre of the subprime crisis were close to worthless and some poor profit results were posted.

There was a broad market decline on Wall Street overnight leaving the Dow to do its own thing on rumours of a bid for telco Verizon.

It’s big, it’s bold, and it’s all cash. There was little surprise last night as Rio confirmed it’s bid for Alcan, and Alcan said yes please.

The Dow has posted one of its most extraordinary sessions ever rising 284 points largely on the back of retailer earnings reports.

Both UBS and Credit Suisse have lifted their price targets for Aditya Birla Minerals reflecting improved copper price forecasts as the company enters production.

The Dow bounces back 76 points as bond yields rise again? The subprime scare has caused a strange misalignment of the planets as Wall Street results season gets into full swing.

The Dow fell 148 points last night as bullish faith in the American consumer took a hit and S&P and Moody’s began moving in on the sub-prime mortgage market.

It was happening all over the world last night.

Strong economic data overnight put paid to interest rate rise fears allowing the Dow to rally but causing the US dollar to fall. The Aussie is now testing US$0.86.

Rate decisions are made by the RBA, BOE and ECB this week while the US anticipates employment numbers following a very volatile Friday night session.