Thursday, September 11, 2008

More of the Same......

The dollar once again rallied across the board as fears of a slowdown overseas out weigh the problems we are facing here in the States.

Lehman Brothers reported earning, well actually losses, earlier then scheduled in an effort to calm the markets. I guess they were concerned that the market was building in a doomsday scenario and they wanted to put out the news to “calm” the markets.

Lehman Bros Holding Inc reported the biggest loss in its 158-year history, said it will sell a majority stake in its asset-management unit, spin off real-estate holdings and cut the dividend in an effort to shore up capital and regain investor confidence.

Lehman fell almost 7 percent in New York trading after posting a $3.9 billion third-quarter loss on $5.6 billion of writedowns, worse than the $2.2 billion loss analysts had predicted. The company said it's auctioning off about 55 percent of the asset-management group, including fund-manager Neuberger Berman, and didn't name potential bidders. The real-estate spinoff is expected to be completed in the first fiscal quarter of 2009, according to a statement today.

Still the markets suffered. Equities were up small and US Dollar interest rate futures were basically flat on the day, but Emerging Markets continued to suffer and with nervous markets come thin liquidity.

Brazil is expected to raise interest rates tonight, 75bp to 13.75. This move is expected and built into the market. I expect another 50bp before year end. The bond market rallied in anticipation of this.

Over all I am confused mostly because I am trying to fade this market. When will I learn !!!

Good Luck and good Currency Trading.



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