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-- Posted Wednesday, 1 October 2008 | Digg This Article | Source: GoldSeek.com

The Day Ahead: October 1, 2008


Day In Review:

• Equity markets saw a broad based relief rally caused by a breakout of optimism that the U.S. Congress will revisit the $700bln rescue package
• The FDIC requested temporary authority to increase the deposit insurance limit from $100K to shore up the growing crisis of confidence in the domestic banking system. Members of Congress have suggested the limit could be raised to $250K
• The US dollar saw the single largest increase in value against the Euro since its inception. The catalyst was the change in market sentiment that a rescue plan will be obtained and concern over select financial concerns in Europe. 

Day Ahead:  

• Market action will focus on moves in Washington D.C. to salvage in some form the rescue plan and information provided by the ADP estimate of the employment situation and the ISM survey of manufacturing conditions nationwide. 
• The focus of the market may move to the deteriorating economic situation in Europe and the prospective shakeout in the EU banking system. This does present additional downside risk for the Euro.
• The day will see a heavy slate of economic data with the publication of the September domestic vehicle sales, ADP employment estimate, ISM manufacturing survey and August construction spending report.
• The EIA petroleum status report will be released at 10:35 EDT.

Joseph Brusuelas
Merk Investments
Chief Economist/VP Global Strategy
555 Bryant St. #455
Palo Alto, CA 94301
650-323-4341 Ext 107
323-481-6720 (Cell)
650-745-7045 (Fax)
jb@merkinvestments.com

This report was prepared by Merk Investments LLC, and reflects the current opinion of the authors.  It is based upon sources and data believed to be accurate and reliable.  Opinions and forward-looking statements expressed are subject to change without notice.  This information does not constitute investment advise nor a solicitation or an offer to buy or sell any products or services.

-- Posted Wednesday, 1 October 2008 | Digg This Article | Source: GoldSeek.com

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