Interesting turn of events in the late session last night. ASX 200 went very low, to the 3600 range after closing hours. Sometimes, in the mid session in the US, I guess, the market index shot up. It finished around the 3800 range, near the closing level of the Australian trading hours.
Despite this downward movement there are some encouraging signs. Interbank lending rates are easing. Credit is starting to flow again. Existing home sales in the US were up 5.5% during September. Oil is just above $60 despite strong Dollar and cut in oil production.
Some economists are of the opinion that current sell-off is caused by hedge fund meltdown. Australian superannuation funds are loosing $1 billion a day.
Hopefully after the hedge funds are out, the commodity, mining equity and Australian dollar markets should stabilize.
Despite this downward movement there are some encouraging signs. Interbank lending rates are easing. Credit is starting to flow again. Existing home sales in the US were up 5.5% during September. Oil is just above $60 despite strong Dollar and cut in oil production.
Some economists are of the opinion that current sell-off is caused by hedge fund meltdown. Australian superannuation funds are loosing $1 billion a day.
Hopefully after the hedge funds are out, the commodity, mining equity and Australian dollar markets should stabilize.
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