Weekly musings from your editor. I think I have discovered a new barometer for global economic growth. Investors better watch this one closely before making any decisive decisions.
The world is watching as the US financial system battles through more casualties. Lehman Bros will soon be no more and the same can be expected from Washington Mutual.
Are we soon to see a turnaround in any of these interrelated elements?
The Dow posted a 334 point turnaround from low to high last night as Lehman Bros directed market sentiment.
The Dow was up 38 points last night as the market had a bit of a rest.
Monday’s movement in the gold price in the US was no doubt a disappointment for gold bugs expecting more following the bail-out. But what might the bigger picture be?
While stocks around the globe jumped over 3% yesterday, the US broad market S&P 500 managed only 2% in a wild session. The bulls and bears are in a face-off.
Standard Chartered think US labour market figures are likely being overstated, which suggests falling inflationary pressures going forward.
The US Treasury’s rescue of Freddie Mac and Fannie May should help US markets rally, pulling Australian equities along for the ride.
It was inevitable. The US government last night stepped in to take over control of mortgage lenders Fannie Mae and Freddie Mac.