Bonds/Interest Rates

The Dow did not move triple digits in either direction last night as Wall Street awaits the election outcome. It closed down a mere 5 points.

The TD Securities Melbourne Institute Monthly Inflation Gauge fell in October for the first time since February of 2006, suggesting Australia’s inflation pressures are now easing.

The US third quarter GDP was not as bad as expected allowing the Dow to gain 190 points.

RBA deputy governor Ric Battellino thinks only a slowdown, not a recession, is likely in Australia.

When the Dow rallied 936 points in October 13 it fell 76 points on October 14. After an 889 point rally on Tuesday the Dow fell 74 points last night. The Fed delivered a 50 point cut as expected.

For the second time this month Wall Street has provided a spectacular rally, with the Dow rising almost 900 points in the session.

The Dow fell 200 points – all in the last ten minutes – as buyers remained tentative. Base metals, however, put in some extraordinary reversals.

The Argentine government shocked the world last night by announcing plans to sieze public pension funds, sparking fears of another default.

The Dow fell 500 points last night as withdrawals from emerging markets become the latest snowball.

Economists agree that while the strong CPI will not prevent further rate cuts, it may reduce the speed of easing from the RBA.