We saw the final shape of the global bank bail-out and guarantee program overnight, our time, with the Bush Administration revealing a $US250 billion first stage to inject capital into sound, but needy groups and to guarantee some bank debt for three years.
For the moment at least, China's exporters have defied slumping US and European economies as the annual Christmas supply period ramps up.
Yesterday Australian shares rallied to their biggest one-day gain since October 1997. Confidence in Australian banks was buoyed by Prime Minister Kevin Rudd's announcement that all deposits in Australian financial institutions would be guaranteed for three years. Analysts said last week the market probably hit the bottom when investors were in the depths of fear and panic, but recovery may cost a long time. Despite the short-term buoyancy, the Australian market remains fearful of deeper plunges, especially if the powerful US market continues to falter.
The market is flying today – up 213 or 5.1% at midday - on the back of Wall Street's record breaking bounce overnight. The SFE futures predicted a 306 point gain in the market this morning. The banks are regaining some of their recent heavy losses. Resources pumping. Fortescue up 48%. Industrials up 5.3%. Property up 5.2%.
Markets surged worldwide, rebounding from their worst week in decades, after governments in Australia, Europe, the US and Asia agreed to support banks and combat the credit crisis.
The volatile stockmarket is not stopping some companies from pursuing strategic options.
A spark of life in the listed securities of property investor and funds manager, Valad Property Group after it delivered mixed news for investors, especially about prospects in 2009.
