Bernanke used the words "significantly higher" inflation [than the Fed wants], in academic speech at Harvard, which dragged on the financials in the afternoon. Banks sector hit the lowest level in 8 years on Bernanke's Harvard talk. Energy sector down 1.2% as crude prices fell 1.8% to $122.04 /barrel – weekly government report showed increase in inventories. Fed and Securities and Exchange Commission said they haven't put pressure on Lehmans to raise more capital. Regulators have suggested that Lehmans isn't facing the same pressure that drove Bear Stearns near to bankruptcy. Chevron and ConocoPhillipsled the energy index down to the lowest level since May 5th. The Energy Index is 7% off its all time high in May and crude has fallen 5% since its high.
Both BHP and RIO down in ADR form overnight, 0.56% and 3.2% respectively. BHP down 143c to 4302c. RIO down 538c to 13487c. Metals mixed overnight – Copper down 0.4% and Aluminium down 1.7%. Nickel up 2.1% and Zinc up 2.3%. Zinifex up 13c to 933c.
Oil price down $2.03 to $122.30 after the U.S. Energy Information Administration said crude inventories fell by 4.8m barrels last week. Analysts were expecting a 2.7m barrel increase. Woodside down 426c 5934c. Gold down $1.70. Newcrest down 64c to 3105c US Bonds down with the 10 year yield up to 3.97%.
