The financial markets are a little more confusing than usual at present, credit and equity markets are contradicting each other – a contradiction that surfaced in yesterday morning’s JP Morgan credit and rates market commentary.
Equity
The Economy: RBA, US Fed meet – rates and market turmoil in the crosshairs
Monday was another bloody day in Australia’s equity markets but last night on Wall Street saw a rally, with rises on equity prices generally exceeding 2%. The relief is palpable, although there is more volatility to come.
The Economy: Markets boom
US markets surged overnight. Buoyed by generally good earnings, the Dow closed above 14,000 for the first time, up on the day by 0.4%.
