Moving the Market
- Libor rises for 10th straight day to 5.72% (7-yr high) amid lingering credit concerns; further unwinding in yen carry trade exacerbating safe-haven attractiveness of Treasuries
- WSJ reports that Citigroup and other banks may be vulnerable to SIV losses; Citigroup cuts estimates on two brokers (e.g. LEH, MS); Lehman downgrades two banks (e.g. DB, CS)
- Pending home sales plunge 12.2% in July, biggest drop since index began tracking in 2001; fifth drop in seven months
- Monthly ADP data shows only estimated 65K nonfarm jobs were created in August (slowest pace in 4 years); Friday's report expected to show 110K nonfarm jobs were added
- Fed's Beige Book offers little insight as to how Fed will respond to current mortgage-related credit crunch
- Apple's revamped iPod lineup fails to excite shareholders; Costco's Aug. same-store sales well below expectations
Looks like the banking sector will be affected much tomorrow in Singapore. STI is likely to drop, but maybe some counters with good fundamental will be able to ride through this storm with lesser losses. I do remember that coscocorp came out a very good result during the crash, and it just drop down like nobody business, but that is history. I do not think this will happen again for this week or so. More or less during the FED meeting, the chances of interests rate and discount rate cuts are very high. If Fed do not cut, we will see USA go to a recession and it will not reflect good for next year election. So chances of USA going to a recession is very low for this year.