Energy

Jobs numbers were good, housing numbers were woeful (which is good), oil shot up again (which is good for oil stocks) and end of quarter window dressing is in play.

The Dow ratcheted up another 100 points last night driven largely by GM. Bear Stearns rumours also fuelled the fire along with a very poor durable goods number.

A slew of poor economic data and profit reports sent the Dow off into negative territory last night, before everybody remembered the Fed was standing ready.

There were economic data released last night, but there will be quite a lot more this week. After posting solid gains it was time to take some money out. The IMF also disappointed the financial sector.

The Dow had added 53 points on the close to finish a tumultuous week up 2.8%.

Wall Street began to feel more edgy last night as the US dollar accelerated its slide against major currencies. Mixed earnings reports included a shock result from Goldman Sachs.

Positive momentum carried through on Wall Street last night. Base metals in London posted the gains they would have made yesterday had the exchange not closed before the Fed announcement.

The Fed cut the target rate and the discount rate by 50 basis points last night. The Dow rallied 336 points. The US dollar fell to a record low. Gold surged to a 27-year high. Oil surged to a record high. The Aussie jumped US2c.

Increasingly bellicose rhetoric from Dick Cheney with respect to Iran helped to push oil and gold higher last night as Wall Street awaited the Fed.

The Dow reversed a 100 point fall on Friday as poor economic data cheered a market hoping for a big rate cut.