While the US Federal Reserve is becoming increasingly concerned about the inflation outlook the Commonwealth Bank suggests the US Housing market needs to stabilise before a rate hike is considered.
US thrift IndyMac collapsed on Friday as the market focused on Freddie and Fannie. It was the second biggest bank collapse in US history.
The Dow closed down 128 having been down 250 on rumours surrounding the US mortgage lenders and Israeli jet fighters.
The Dow rose 81 points in other volatile session as oil spiked suddenly and financials stared death in the face.
The S&P 500 crashed into official bear market territory last night led down by the financial sector. The Dow fell 236 points.
Oil fell over US$5 last night as a coordinated Bernanke/Paulson/Dimon rhetorical effort bolstered the greenback and turned the financial sector on its heels. The Dow rallied 152.
It was a wild night on Wall Street as investors traded off a lower oil price against more financial sector weakness. The Dow closed down 56 points.
After hiking 25 points, the ECB indicated no further hikes, allowing the US dollar to rally and the Dow to bounce back 73.
The Dow fell 166 points last night as oil closed above US$143 and Merrill Lynch suggested General Motors could go bankrupt.
A not-so-bad sales result for General Motors turned around a weak Wall Street last night. The Dow closed up 32.