Archived IMT (2009.11.27)

US equities near their session lows but risk currencies are well off their worst levels of the day as USD and JPY retreat. Oil rebounds to $75.90s from 72.40, while gold gains $40 from its $1,136 low. Some CDS traders say the reaction to Dubai is exaggerated. But next week shed more detail on HSBC and RBS involvement in Dubai Worlds lending. Stay tuned on the confirmations from banks material exposure (if any). We could expect the usual rebound in equities andd risk currencies on Monday, but pre-US jobs report cautiousness may halt any concerted optimism. Aussie bears watch out from next week's RBA decision, which is expected to produce a 25-bp hike BUT if equities fail to recover hal of the week's losses, then it might as well remain on hold, in which case could provide a sharp selloff in the currency.