Energy

An early rally spurred by Fannie and Freddie failed last night as traders realised the overall implications. Regional banks were crucified. The Dow fell 45.

The Dow closed down 128 having been down 250 on rumours surrounding the US mortgage lenders and Israeli jet fighters.

The Dow rose 81 points in other volatile session as oil spiked suddenly and financials stared death in the face.

The S&P 500 crashed into official bear market territory last night led down by the financial sector. The Dow fell 236 points.

Weekly musings by your editor. Let’s suppose high oil prices are here to say. Does anyone still see any benefits in portfolio diversification?

Oil fell over US$5 last night as a coordinated Bernanke/Paulson/Dimon rhetorical effort bolstered the greenback and turned the financial sector on its heels. The Dow rallied 152.

It was a wild night on Wall Street as investors traded off a lower oil price against more financial sector weakness. The Dow closed down 56 points.

A poll by TV station Sky Business among experts in Australia has generated a range for oil price forecast by year end between US$100 and US$175 per barrel.

After hiking 25 points, the ECB indicated no further hikes, allowing the US dollar to rally and the Dow to bounce back 73.

The Dow fell 166 points last night as oil closed above US$143 and Merrill Lynch suggested General Motors could go bankrupt.