Currencies

Country wide shares traded as much as 20% higher in Wednesday’s aftermarket on news of the BA stake. However both Countrywide and the market closed flat last night.

Markets have settled since the US Federal Reserve lowered its discount rate but Danske Bank suggests it is still too early to re-establish carry trade positions.

Stocks went up and bonds went down last night as a seized credit market began to see the first signs of movement.

If fallout from the current global adjustment of risk perception becomes permanent, how would that affect the economy? Commonwealth Research has some numbers.

Panic gave way to simple anxiety on Wall Street last night as the only news of any consequence was a fall in the oil price.

Mixed, with a lack of conviction, is the way last night’s trading US stock markets could be described as the Dow recovered early losses to finish higher. We are now playing a waiting game.

The US Fed back-flipped on Friday, declaring an appreciable downside risk to the US economy. In cutting its discount rate, the Fed sparked a 233 point rally in the Dow.

In an extraordinary night that followed an extraordinary day, commodity prices collapsed, US bond yields were clipped, the yen accelerated its buyback and Wall Street found a bottom.

The crisis formerly known as subprime is reaching the status of an emergency. And as we speak, two hurricanes are brewing in the south.

Global inflation levels have been held in check during the emerging markets boom as China in particular has exported deflation. Will it be different now?