11.03.2009

Markets world over saw a relief rally as banking stocks surged amidst news that Citi made operating profits in the first two months of 2009. USD was sold off across the board, as demand for safety lowered, and investors came back into the markets. In UK housing and economic activity plunged to 28 year lows, dragging the pound back to 1.3750. Euro was upbeat before ECB's Weber hinted further rate cut, which acted to soften Euro. Elsewhere, S&P saw one of its biggest rallies since November, and risk appetite seems to be returning into the market. Fed's Bernanke came out with positive comments which helped market rally - he said that the government would ensure that banks are sufficiently capitalized and moving forward banking system and financial institutions as a whole better.