The latest rally on Wall Street hit a small roadblock with a rise in American Express credit card delinquencies and concerns over AIG paying bonuses creating a few concerns.
Industrial production news was not good and a manufacturing index was also at record lows but the market liked Ben Bernanke’s comments about an end of the recession this year as well as reference to aggressively acting to stabilize the financial system.
Also developments such as HSBC saying it won't need to raise more cash — or get any more bailout money from the government — after its recent $18 billion rights issue also buoyed the market.
There is a lack of pessimism and now we need to see more strong government action to build confidence. Then the economy and corporate results have to chip in.
The Oz dollar, which is a good indicator for Wall Street confidence, is strong at 65.96 US cents.
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