Daily Financial Crisis Recap 28.10.08

Stocks soared while expecting a Fed rate cut. The Dow closed at 9,065.12, a gain of 889.35 or 10.88%. Crude oil is still falling. It closed at $62.73. Consumer confidence is at a low point. Some analysts believe it’s the start of a consumer-led recession, but ultimately the problem rests with the banks and their derivatives schemes for making a quick buck.

Iceland raises its key interest rate to 18%, a gain of 6%. The hike is part of a deal Iceland struck with the IMF. It’s also a tactic to prop up frozen credit and currency markets. Two weeks ago, it cut the rate by 3.5% to 12%. British PM calls for more contributions by China and the Gulf States to the IMF to help out.

Huntsman/Hexion merger not going ahead as planned because banks won’t finance it. Washington considering helping GM and Chrysler merge.

Denmark is rethinking its spurn of the euro. Hedge fund traders take VW stock up to $1,256 a share, after Porsche announced that it had taken control of VW with 75% of the voting shares. This partly happened because short-sellers were betting that VW shares would fall. The shares closed at $1,215.38. On Friday, the shares were at $261.76 on the Frankfurt exchange.

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Relevant Posts (check out the finance category for more)

Author: range

I'm mathematician/IT strategist/blogger from Canada living in Taipei.

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