As at 2.30 today (lifted from my subscription):The market is...

As at 2.30 today (lifted from my subscription):

The market is down 103 having been down 112. Financials down 3.3% after the biggest fall in financials in the US in eight years. Resources outperforming down 1.2%. Property down 3.2%. Energy/oil stocks having a good day. SFE Futures were down 37 this morning.

Fannie Mae and Freddie Mac rescue plan described as an unmitigated disaster.
Predictions Fannie Mae and Freddie Mac will fall further.
Financials down 5.14% - the biggest one day fall in 8 years.
Regional banks were down 11%.
Washington Mutual down 35% - its steepest fall ever.
Bonds up in a flight to safety.
Gold up $13 in a flight to safety.
Resources outperform.

The A$ hits another high of 97.39c. We are on our way to parity. The fact that the US Government is about to quasi underwrite $5.3 trillion of residential loans through their support of Fannie Mae and Freddie Mac does nothing for the US$.

The Banks – most off more than 3% following the lead from the US financial sector. Macquarie down 6%. JP Morgan went UNDERWEIGHT on the NAB yesterday with a target price of 2356c, well below the share price of 2647c. This morning ABN AMRO comments on the whole sector saying “given global sentiment towards financials is likely to remain negative due to the prospect of further writedowns and capital raisings, we maintain that a sustained bounce-back of Australian bank share prices is unlikely in the short-term”. They have a BUY on the NAB. JP Morgan has also cut their CBA recommendation to NEUTRAL with a 3978c target price. Now 3875c down 141x today. Talk that the NAB may bid for Alliance & Leicester in the UK.