US markets closed higher overnight, buoyed by strong company earnings results.
The S&P 500 put on 8.06 points or 0.86 per cent to 940.74.
JPMorgan Chase & Co reported strong company earnings, up 36 per cent for the second quarter, but said there was continued deterioration in consumer credit.
Goldman Sachs reported better than expected earnings on Tuesday. Bank of America will report tomorrow. In tech stocks IBM reported better than expected earnings after the bell.
New York University professor of economics Nouriel Roubini, who forecasted the economic crisis, made positive comments yesterday about the US economy, telling Reuters the US would be out of the recession by the end of 2009, and reported by a number of news agencies. Later Roubini said in a statement that the comments were taken out of context and his view on the economy had not changed from what he originally predicted.
“I have said on numerous occasions that the recession would last roughly 24 months. Therefore, we are 19 months into that recession. If, as I predicted, the recession is over by year end, it will have lasted 24 months with a recovery only beginning in 2010. Simply put I am not forecasting economic growth before year’s end,” he said.
Yesterday, the S&P/ASX 200 closed 71.1 points or 1.81 per cent higher to 3995.6.
Oil was up at US$62.02 a barrel, and the Oz dollar was buying 80.43 US cents.
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