Market wrap: moves to reassure US markets by Fed Reserve chairman Ben Bernanke helped the major indexes rally hard overnight. Beaten-up financial stocks helped US indexes reverse Monday's heavy losses with gains of 3 - 4% after Bernanke said floundering US banks should not need to be nationalised. The news sent banking indices up 12 - 13%. REITs jumped 8% and oilers also fared well.
Gold miners were hit hard as the price of gold slumped 2.5% to $970. The major US gold miner index fell 7%. Oil rallied nearly 4% back towards $40. Base metals also caught the updraught, with solid rallies across the board.
No surprise that our futures are pointing towards a very positive day. The SPI rose 70 points to 3385.
As CK says, the financials should offer trading opportunities today. I'll also watch the REITs for signs of a bounce. GMG should be worth watching for the reaction to its report. Also due to report today are AIO, VPG, EHL, WOR and a heap of others.
