Bonds/Interest Rates

AIG may go the way of Fannie and Freddie. Fed leaves the cash rate unchanged. Strong results from remaining investment banks. Dow up 141.

The Dow fell 500 points to new lows as AIG nears bankruptcy. Oil fell over US$6 as commodities (but not gold) are again shattered.

Are we soon to see a turnaround in any of these interrelated elements?

The Reserve Bank of New Zealand surprised the market yesterday with a bigger than expected cut to official interest rates.

Australia’s August labour market data came in stronger than expected and economists see this as a sign the Reserve Bank won’t be aggressive with respect to cutting interest rates.

Bank deposits in Europe are not rising to meet loan demand, exerting even more earnings and balance sheet pressure on the sector.

Monday’s movement in the gold price in the US was no doubt a disappointment for gold bugs expecting more following the bail-out. But what might the bigger picture be?

While stocks around the globe jumped over 3% yesterday, the US broad market S&P 500 managed only 2% in a wild session. The bulls and bears are in a face-off.

The biggest decline in Australian job ads since February 2001 has ANZ backing the prospect of another rate cut soon.

It was inevitable. The US government last night stepped in to take over control of mortgage lenders Fannie Mae and Freddie Mac.