Asian Investors Regain Their Appetite
It is amazing what $100 billion can do to restore investor confidence.
The U.S. might not be out of the woods, but Asian marts are steady in early trading after getting pummeled last week. Will it last?
Asian stocks rebounded from their biggest drop in five months after the U.S. Federal Reserve injected $38 billion into the banking system to ease a credit crunch sparked by losses on higher risk mortgages. Bloomberg
The day is still young however, but most markets are looking firmer than Ari Gold's wife. Even Macquarie Bank is gathering itself after a recent bout of unrelenting selling. The stock has pulled back sharply as investors debate their focus on infrastructure, sort out losses at its Fortress fund operation, and continue debating whether they are too dependent on the credit markets to finance their growth. The stock could remain a weather vane, embedding clues on fragile investor psychology.
Still, with both Australia and China making noise about inflation remaining stubbornly high, risks abound. Baseless rumors about a rate cut in the U.S. continue to circulate, and although we won't perpetuate such dirty vile gossip, we do worry about the health of the U.S. dollar. Perhaps the slowing Japanese GDP growth will provide us with a respite.
Strap yourselves in for another crazy week. Although we would guess that last week’s volatility will be hard to top. Many of the larger quantitative trades in individual U.S. equities have likely been unwound.
Right?
We will back in a bit, as we coin the newest phrase to sweep the street since subprime slime entered the popular lexicon.
Asian Stocks Rise, After Biggest Drop in 5 Months
Bloomberg
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