It was back to business as usual on Wall Street last night as the dollar hit new lows, oil new highs and an early rally in the Dow failed.
The Fed responded to criticism last night by not cutting rates and instead injecting liquidity directly into the mortgage market. Wall Street loved it and the Dow rallied 415 points.
Westpac’s Monthly Market Outlook sees Australian growth as remaining solid this year, though with inflationary pressures persisting there is scope for further increases in interest rates.
The Dow became the last of the major three US stock indices to break its January low last night as January jobs data showed a large drop when a small rise was expected.
GaveKal looks at why commodity prices are soaring but commodity producer share prices are not.
The S&P 500 closed below its January low last night and the Dow came closer, falling 215 points.
Just when you thought perhaps the parabolic rise in commodity prices might have stalled, last night oil posted the biggest ever one-day gain in its history. The Dow was choppy once more.
While some arguments suggest it isn’t demand that is driving commodity prices but a weak US dollar SVB shows there has been no re-pricing of commodity costs away from the greenback.
The Dow bounced back from the depths of more financial sector woes last night as commodity prices went the other way – finally reaching a blow-off top that saw a profit-taking scramble.
The flight to commodities continues a-pace as the US dollar weakened further last night on more poor economic data. The Dow recovered earlier losses.