Wednesday, December 02, 2009

The “all-clear” siren sounding across global markets

SHOOT: Gold is breaking records. The dollar is plumbing the depths. Oil is nudging $80 again. "All-clear"? The markets are full of shit.
clipped from

21:30 GMT: The “all-clear” siren sounded across global markets on Tuesday, encouraging traders to scurry from their bolt-holes and resume playing with riskier assets.

Gold hit a fresh high above $1,200, equities powered ahead and industrial commodities found favour as the “risk on” switch was flicked.

As has so often been the case in recent months, it was a downward lurch in the dollar that helped convince investors normal service had been resumed following the brief retreat caused by the crisis in Dubai.

Oil rose 1.1 per cent to $78.13, adding to gains of the previous session following news that a UK yacht crew had been detained by the Iranian authorities.

News that Dubai World said it had begun “constructive” talks about the restructuring of its debt also gave a lift to stockmarkets – though it could not stop the Dubai market from plunging for a second day.

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