The combination of the White House dampening down nationalization talk along with a similar effort from Ken Lewis at Bank of America has cooled the market’s fever that several of the country’s biggest institutions will end the week in government hands. The Dow and S&P both got back to breakeven before dipping back below water. The Nasdaq, devoid of banks, remains in positive territory.
Currencies trade in a sort of daze after dealers had a near-death experience at midday. Specs have been burned on the short-side of the market on the 125-handle twice in two days. They’ll likely flip toward dip buying in EUR/USD in the near-term. EUR/USD trades at 1.2837.
