A rally in the Dow failed last night as once again Moody’s threatened to downgrade the big monoline insurers. Oil fell further.
Write-downs in the US financial sector are not keeping pace with the increase in bad loans.
It was shades of Bear Stearns last night as the rumour mill conspired to send Lehman down as much as 14%, while oil fell over US$3 after stern words from the Fed.
New regulations are about to hit financial markets in the US and Australia, and in Australia the four pillars policy has been ratified. Good or bad?
The US financial sector index closed below its March 17 low last night, sending the Dow down 134 points.
This week features an avalanche of data both here and abroad, and a few rate decisions.
Benign US personal income and spending data meant tidy up for the month and take off for the weekend.
Standard Chartered’s chief economist is another who believes the global credit crunch is not over, but is now entering Phase II.
Oil fell over US$4, gold fell over US$20, and base metals were hammered. The Dow? Who cares?
Oil rose, gold fell, metals fell and the Dow rallied 45 points in what was a very muddled session last night.