It was a positive week for the stock market but the Yanks still finished off their week in a downbeat way. It’s not surprising given the recent rises and, in fact, a bit of moderation could be a good thing.
However, over the next few weeks these recent rises will be tested to see if the worst is behind us.
The Dow actually had put on 21% from its recent lows and this was the fastest comeback since 1938! It’s only natural to see profit taking with so many question marks over the economy and upcoming company reports.
There has now been three weeks of rises for the US stock market and last week was down to the general acceptance of the Obama plan for banks’ toxic assets.
Meanwhile both personal spending in February and March consumer sentiment came in better than expected.
Looking ahead and the G20 meeting in London needs to give the world economy and global stock markets hope that good decisions are on the way. And there’s a lot of economic news and speeches that could move the market.
Oil continues to improve, which is a good sign finishing at $US52 a barrel and the Oz dollar is at 69.41 US cents.
Locally, we get building approvals, retail trade and private sector credit but the real focus will be overseas.
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