The Dow put on 180 points last night as Bernanke said nothing in Europe, the US dollar weakened, gold surged, and oil hit an all time high.
Wall Street was unsure just what clues were provided by various Fed statements last night, while a Japanese recession looks more clear.
The market was expecting payrolls to rise by 110,000 in August. The real number came as a big shock.
There is little in the way of economic data to focus on in the US until Friday, and Australia is quiet as well.
A big surge in the gold price saw Comex futures close over the magic US$700/oz level while Middle East tensions and low inventories sent oil ever higher. The Dow closed modestly higher.
The Dow was down 143 points last night in choppy trade. It seemed all news was bad news.
The world’s second largest economy is on the brink of recession, and a strong yen is only going to exacerbate the problems. In the meantime, global commercial paper markets remain frozen.
The first day back from holidays saw a tech-led rally on Wall Street while gold has broken resistance and shot higher.
Someone has taken a US$900 million US equity bet 35-60% below the current level with three weeks duration. What does this mean?
Australia, Europe and the UK all make rate decisions this week as Sydney is locked down for APEC.