Last night the US dollar went up and so did the oil price. That was too much for Wall Street, which took profits before a SEC announcement accelerated losses in financials. The Dow fell 200.
A housing warning from Bernanke, poor financial profit results and US$122 oil ensured the Dow rallied 50 points last night.
The Dow fell 88 points last night as the Yahoo deal fell over, oil hit US$120, and doubt was raised about BA’s bid for Countrywide.
A good jobs report kicked off a day that ended in mixed book-squaring ahead of the weekend.
The Dow returned to break 13,000 last night as the market picked out the good from mixed economic data, cementing the idea that the Fed is on hold. Commodities crashed.
Continuing its trend of disappointing production results Lihir has fallen short of expectations for the March quarter but brokers are keeping the faith on valuation grounds.
Markets were confused and disappointed last night as a 25 point cut was accompanied by a non-committal statement. A strong rally evaporated.
Weak economic data offset reasonable earnings reports ahead of tonight’s Fed decision.
Wall Street traded in a narrow range last night as all markets squared up ahead of the Fed decision on Wednesday.
The FOMC is expected to go easy from here on. This is feeding through in higher prices for US shares, and for the US dollar.