Energy

Deutsche Bank’s New York analysts have decided high oil prices are here to stay. There have been some substantial shifts in local target prices as a result.

Wall Street has decided to like Mr Bernanke’s comments as earnings results again pleased, at least before the bell. Oil, gold and base metals were all strong.

Oil prices are again near their highs of this time last year but according to Commonwealth Bank the difference is OPEC can lift production and boost supply.

The Dow recovered somewhat from an initial 134 point fall last night as bargain hunters offset inevitable Bear Stearns weakness and disappointment from Mr Bernanke.

Wall Street action was all after the bell this morning as Bear Stearns announced its funds at the centre of the subprime crisis were close to worthless and some poor profit results were posted.

There was a broad market decline on Wall Street overnight leaving the Dow to do its own thing on rumours of a bid for telco Verizon.

Australia is virtually devoid of data releases this week while it’s all happening across the Pacific, where the CPI release will be the highlight alongside earnings releases.

The Dow has posted one of its most extraordinary sessions ever rising 284 points largely on the back of retailer earnings reports.

As the US yield curve normalises, the oil curve is swinging into backwardation. This should, in theory, lead to an oil price reversal.

The Dow bounces back 76 points as bond yields rise again? The subprime scare has caused a strange misalignment of the planets as Wall Street results season gets into full swing.