Foreign markets take off, U.S. to follow

Posted by Tim

September 8, 2008

I write this a few hours before the U.S. markets open, but it looks like the rest of the world is relieved by the Fed’s takeover of Fannie and Freddie. From the early news, markets worldwide are up 3-5%. News on the BBC has the London Stock Exchange suspending trading due to a computer glitch. Not a good day for that to happen!

A quick look at the U.S. market futures:

DJIA composite: +248
NASDAQ composite: +40
S&P 500 composite: +37

Source: wsj.com 10:15 GMT

I am curious how Freddie (FRE: 0.82 0.00 0.00%) and Fannie (FNM: 0.82 0.00 0.00%) fare today and if the market can sustain the gains through the day and week. Also, it will be interesting to see how bad the the double inverse financial ETF (SKF: 105.84 0.00 0.00%) fares this morning as I am sure many traders will be trying to bail out of their positions. May you have a profitable day!

Note: I have no position in any security listed.