300
17th December 2007, 08:21 AM
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The US finished lower on Friday night, down about 178 points. This drop was attributed to the reaction by investors over higher than expected consumer inflation results. To the investors, the inflation meant that the US Fed is starting to run out of room to move as far as rate cuts. Again, this is cyclical, but there is only so many times you can apply the magic potion before it stops working. The US will have to get the US economists out of the cupboard to have a sit down - which they might have already done in the form of the announcement recently about freezing sub-prime effected mortgages.
The ASX dropped around 90 points on Friday's trading. An interesting note reading on the weekend was that if you were to take out the top 25% of companies, the ASX has dropped 1% rather than rose. Interesting times.
Just my 2 cents
The US finished lower on Friday night, down about 178 points. This drop was attributed to the reaction by investors over higher than expected consumer inflation results. To the investors, the inflation meant that the US Fed is starting to run out of room to move as far as rate cuts. Again, this is cyclical, but there is only so many times you can apply the magic potion before it stops working. The US will have to get the US economists out of the cupboard to have a sit down - which they might have already done in the form of the announcement recently about freezing sub-prime effected mortgages.
The ASX dropped around 90 points on Friday's trading. An interesting note reading on the weekend was that if you were to take out the top 25% of companies, the ASX has dropped 1% rather than rose. Interesting times.
Just my 2 cents