Wall Street slumped sharply on Thursday after disappointing earnings reports and news of China's further tightening bank lending. The US dollar soared to one month high against a basket of currencies while investors shifted to haven.
US stocks overnight rose overnight as investors were looking for positive corporate results to fuel the rally after a disappointing start of the earnings season. A brokerage upgrade of drugmaker Merck & Co and an upbeat outlook from Kraft Foods Inc has helped to lift the healthcare and consumer sectors. Financial shares also climbed during a hearing over the financial crisis on Capitol Hill.
Overnight US shares was lower on the disappointing Alcoa fourth-quarter report and profit warning from Chevron and Electronic Arts. Financial sector also fell as investors feared that a potential government levy might hurt bank profits.
US stocks was slightly higher on Friday, hitting at least 15-month closing highs despite a bigger-than-expected job loss data. US dollar was lowered on the disappointing payroll data. This week the US firms, which are widely expected to show significant improvement compared to the corresponding period last year, will kick off the quarterly earnings reporting season.
US markets closed flat overnight after a report of private-sector job losses and Federal Reserve minutes showing concern about weakness in the labour market. Asian stocks ended mostly higher Wednesday as investors were still in an upbeat mood, but China's Shanghai Composite index was 0.9 per cent lower due to worries over inflation and a possible fund raising by Bank of China.
The Australian share market posted a strong gain boosted by banks and miners on Tuesday after good lead from European markets and Wall Street. At the close, the benchmark S&P/ASX200 index was up 69.1 points, or 1.49 per cent, at 4704.2 points, while the broader All Ordinaries index surged 64.9 points, or 1.39 per cent, to 4724.4.
The Australian sharemarket gave up early gains on Wednesday after the GDP figures released by Australian Bureau of Statistics showed a disappointing result in economy growth. At the close, the benchmark S&P/ASX200 index was 11.6 points lower, or 0.2 per cent, at 4661.9, while the broader All Ordinaries slashed 11.7 points, or 0.2 per cent, at 4676.1
