Currencies

The Dow was down 143 points last night in choppy trade. It seemed all news was bad news.

In recent weeks the yen has had an inverse relationship with equity prices, making it a good barometer of the risk appetite for global investors.

The first day back from holidays saw a tech-led rally on Wall Street while gold has broken resistance and shot higher.

Bernanke’s statement was well received by a market assuming a rate cut will soon be forthcoming. President Bush chimed in with some added relief for mortgage holders.

Wall Street struggled to decide upon last night’s GDP release while the market waits poised for tonight’s statement from the Fed chairman.

After falling 240 points on Tuesday, the Dow rallied 247 points last night. More light volume. More Bernanke madness.

ANZ Bank senior currency strategist Tony Morriss suggests with uncertainty impacting on risk appetite in global markets it will be technicals rather than fundamentals that offer guidance.

The Dow fell 280 points last night as more poor housing data were released, consumer confidence fell, Merrill Lynch downgraded financial stocks and, bizarrely, the FOMC minutes from August 7 were poorly received.

On Friday new home sales spurred Wall Street. Last night existing home sales achieved the opposite.

Stocks rallied strongly on little volume to close the week on a high note following some surprising data.