Bonds/Interest Rates

Earnings, data and the Fed all conspired last night to spark a 3% rally on Wall Street. Dow up 250.

While still negative the Westpac-Melbourne Institute Leading Index continues to improve modestly.

National Australia Bank’s monthly survey of business conditions and confidence levels showed gains over the May results, but not enough for the bank to lift its economic growth forecasts.

An analyst upgrade on Goldman Sachs sparked a low volume snap-back rally last night. Dow up 185.

Westpac has updated its economic outlook for Australia and the other major economies, its numbers suggesting a return to modest growth next year everywhere bar Europe.

A down day capped off the fourth straight negative week on Wall Street, its longest weekly losing streak since the spring rally began in March. Dow down 0.45%.

Few economists disagree that, ultimately, the US dollar is in a downtrend. But unlike previous dollar declines, this time it is emerging markets against which the dollar is overvalued.

Oil led the commodity complex sharply lower last night before buyers rushed into defensives once more. Dow up 14.

Westpac Melbourne Institute Consumer Sentiment Index has delivered a “stunning” result for July.

Monday’s shift to defensive mode turned into Tuesday’s big drop. Dow down 160.