 |
The market closed the day relatively flat, which may not be bad at all given that there is little good news to cheer about. Morgan Stanley disappointed on the earning’s front due to further write downs in its mortgage-related debts. But the stock closed the day up by more than 4% due to a $5 Billion capital injection from China Investment Corp (CIC). The CIC’s acquisition became the latest of several recent deals aiming to inject capital into the troubled US financial sector (others include China’s CITIC Securities $1 billion in Bear Stearns, Abu Dhabi state investment fund $7.5 Billion in Citigroup, and Singapore Investment Corp CHF 11 Billion in UBS). It shows that some (maybe smart) investors have started to see values in those abandoned financial firms. Fed also announced the results for its first special auction: total amount of bids came in at $61.5 Billions, roughly equal to 3 times of the auction amount, indicating banks are not as desperate for funds as some had feared. Treasury bonds rallied sharply today as more money chose to move out of equities. US dollar continued to its recent uptrend and closed higher while oil price also closed higher due to higher-than-expected inventory withdraw. After the bell, Oracle’s earning results beat the expectation by a relatively big margin so tomorrow bulls at least have some good news to chew on. |
|
|
