Fear gripped Wall Street last night as corporate bond markets crashed and investors rushed out of equities and into Treasuries and gold. The Dow was down 450 and gold up over US$80.
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.
Weekly musings from your editor. I think I have discovered a new barometer for global economic growth. Investors better watch this one closely before making any decisive decisions.
Are we soon to see a turnaround in any of these interrelated elements?
The Dow posted a 334 point turnaround from low to high last night as Lehman Bros directed market sentiment.
The Dow was up 38 points last night as the market had a bit of a rest.
Inflation is becoming major concern in Asia and Barclays thinks local currencies may weaken further against the US dollar.
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.
It was inevitable. The US government last night stepped in to take over control of mortgage lenders Fannie Mae and Freddie Mac.