There was no rate rise from China this weekend but a Fed decision is pending on Thursday.
The Dow fell 185 points on Friday as Bear Stearns activated a US$3.2bn bail-out and the Democrats declared war on the rich.
China has relaxed its foreign investment rules once more, and ticked off the IMF. And there may be a rate rise this weekend.
The biggest US IPO in five years closed after market last night as Blackstone raised US$4.13bn. Some comforting economic data saw Wall Street rise against higher bond yields.
Major US investment banks were frantically trying to head off a collapse in the US CDO market last night. Early warnings were what sent the Dow into a tail spin.
A jump in bond yields and a withdrawal of a JP Morgan bid for two hedge funds spooked Wall Street in the last hour of trade.
Long term capital flows into the US rose in April, belying bond price movements. But China has become a net seller.
Today may not be the day for Rio to close over $100, but it will be BHP and nickel stocks that will cop the brunt.
The CPI failed to frighten in the US on Friday as both the US and Australia look ahead to housing data this week.
US core PPI was only up 0.2% in May. Now for the CPI.