The biggest story yesterday was the coordinated central bank intervention which opened the spigot for USD funding for liquidity-constrained banks, especially European banks (here). There was rumors that some European banks were facing difficulty in obtaining USD funding (here). There is another story that U.S. Treasury Secretary, Tim Geithner has suggested that Europe comes out with a rescue package along the same line as the U.S. TARP (here). This big news & the "EURO-TARF" story have caused a big rally overnight in Europe, with the major indices such as CAC & DAX gaining about 3.2-3.3% while FTSE jumped about 2.1%.
Is this a game-changer? Not yet. The coordinated central bank intervention alone is not enough. It is a move to stabilize the market. However, the EURO-TARF idea could be a game-changer. I still can't see how Greece can avoid a default with its mountain of debts.
4 comments:
It look like like yday DJIA solid gain was a great momentum. All chart indicator give a good sign, and perhaps can attract more investor back to the market.
Anyhow, I am still bearish. Let us see whether DJIA can broke up 11,600 or not.
Hi Ivan
Global equity markets are still very weak. However, we can see that a few stock markets are not making new low in September- when compared to August. They include DJIA, FTSE, STI & FBMKLCI. There is still a possibility of a bear rally to come.
Hi Alex,
I would like to share this site with you - http://www.mining.com/2011/08/30/the-bear-market-rally-has-begun/
What's your opinion about this article ?
Tx!
Thanks Alex. Let us wait patiently for the bear to come. Preparation for another week. . .
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