The market is down 21. Dow finished 3 points up. The Dow was up 124 in the morning with "good news" on the financial front. But a broad based pull back in the afternoon saw the market dip to be down 26 at its lowest. Still, happy to see some consolidation after the Dow's gain last week of 3.2% and a rise in the S&P of 7.8% off its March 10 low.

Financials in the US up 1%(best performing sector) on reports that Washington Mutual (up 29%) would receive a $5 billion injection from a private equity consortium comprising TPG, allaying fears of more write downs and further liquidity crises. Alcoa kicked off the results season with a shabby 4% fall on results down 54%.

There have been $232 billion in credit loses related to subprime writedowns. 14 banks and security firms have required cash outside of investors over the past year, but securities firms are beginning to suggest the credit market is loosening up with Merrill Lynch research on the European bank sector upgrading recommendations and saying credit markets are "past their worst".

Financials were dragging their feet in our market early on this morning but have recovered a bit perhaps on news that the RBA has taken $410m out of the banking system – a sign perhaps of easier credit market conditions. There is still $3bn in the system down from $6.8bn in January. Resources generally better – up small.

Both BHP and RIO up in ADR form overnight, 2.53% and 0.4% respectively. BHP showing strength in early trading, up 47c to 4102c. RIO up 99c to 13790c.

Metals mostly up overnight – Zinc up 2.1%, Copper up 0.7% and Aluminium 1.5%. Nickel down 0.6%. Zinefex down 2c to 1014c.

Oil price up $2.82 to $108.91 on speculation that OPEC will hold production steady this year. Woodside up 65c to 5690c. Gold up $13.60 to $926.80. Newcrest down 29c to 3509c. Bonds down with the 10 year yield up to 3.54% from 3.47%.