The Dow rallied 200 points as The Plan moved another inch closer to agreement, but it is a very watered down model that Paulson may have to accept.
Where is the US dollar going? Standard Chartered thinks that it all comes down to your investment timeframe.
All financial markets were as good as unchanged last night as the world goes into limbo. A resolution on The Plan does not yet look imminent. (Locked for subscribers until 10:00 AEST)
With the market bailout expected to cost up to US$1 trillion, the US’ huge budget deficit is set to get a lot worse, which should be bad news for the US dollar.
The Dow managed to hold square by 3pm but a lack of progress on Capitol Hill saw a late sell-off of another 161 points. (Locked for subscribers until 10:00 AEST)
The Dow fell 372 points as Paulson’s plan was met with uncertainty. The US dollar was trashed. Oil made an artificial spike.
Standard Chartered has downgraded its outlook on the Chinese Yuan to Neutral as policy changes mean further significant strengthening is less likely, for now.
Another 368 points in the Dow. Heavy volume. The world awaits.
The US Treasury has a plan that will involve rescuing the entire financial system, not just those institutions which look like failing. A snap short-covering rally sent the Dow up 410 points. (Locked for subscribers until 10:00 AEST)
Even though the US dollar has rallied hard in recent months, weakening global conditions remain supportive for further gains.