It only needed China to deny it was looking to dump the euro to release pent up buying demand last night. Dow up 284. Aussie surges three cents.
As we are not seeing anything like the credit crunch of 2008, brokers remain confident of value on offer in stock markets with Australian resources and energy highly favoured.
Wall Street opened stronger last night, but ultimately closed lower, as the rumour mill churned and the euro pushed toward previous lows. Dow down 69.
The Dow opened down nearly 300 points as Korea entered the mix before a rolling wave of buying took the average back to only down 22, and the S&P into the green.
Wall Street saw a nervous late sell-off as Spain moved to take over a troubled regional bank, but commodities were strong overnight. Dow down 126.
While the European crisis has hit commodity prices, at the same time the market is terrified of Beijing’s attempts to slow its property bubble.
A brief look at important company events and economic data releases next week.
For the first time in a long time, Wall Street fell as the euro rallied last night, based on financial regulation fears within the general panic. Dow down 376.
Of all the negative influences currently impacting on the Australian stock market, none is greater than “Oh God I’ve seen this movie before”.
The euro fell then bounced hard last night and Wall Street again followed suit, turning a 186 point down day in the Dow into only 66 points down.