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Financial Markets Consolidate In Aftermath of US Recapitalization Plan Announcement
Tuesday, 14 October 2008 17:28:24 GMT  |  Terri Belkas, Currency Strategist
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The financial markets have done little but consolidate following the recapitalization plans announced by the US Treasury, Federal Reserve, and FDIC on Tuesday morning. Indeed, measures of market volatility, such as the CBOE's Volatility Index, have failed to pull back while the Dow Jones Industrial Average has teetered around yesterday's closing level of 9,387.61 throughout the day. Meanwhile, in the forex markets, the Japanese yen crosses have managed to hold on to their gains accumulated during the European trading session, but have pulled back from their 9am (EDT) highs. Overall, the moves suggest that investor confidence remains shaky and traders are hesitant to pile back into risky assets.

Dow Jones Industrial Average (Daily Chart)
markets_101408_1
Source: Bloomberg

USD/JPY (Daily Chart)
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Source: Bloomberg

VIX Index (Daily Chart)
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Source: Bloomberg

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