The breakout this week after the stress tests were largely positive and the Federal Reserve acknowledged the economy had improved since January ushered in a new wave of bullishness with the yield on the 10-year Treasury ticking up to 2.3% stoking the theory that money rushing out of bonds could flow into stocks.
The markets certainly see the reserve requirement cut as a positive for the sector.
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Business conditions for mid-Atlantic manufacturers remain barely positive this month, as the Federal Reserve Bank of Philadelphia's index of general business activity slowed in April from March.
For the uptick, investors can thank Federal Reserve Chairman Alan Greenspan and the positive economic news he has been trumpeting.
Following a positive interim analysis showing that fractional flow-reserve-guided PCI was superior to optimal medical treatment, an independent Data and Safety Monitoring Board (DSMB) has recommended that patient enrollment in the ongoing FAME II trial be stopped.
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Citi executives acknowledge the reserve calculations are somewhat up to interpretation, but say they saw positive stabilizing trends in their credit portfolios.
Yet if profits are measured properly, as Alan Greenspan, chairman of the Federal Reserve, suggested last week, then the concerns may be masking some positive signs.
They were smarting from studies (including a couple from the Federal Reserve) concluding that these two "government-sponsored enterprises" had little or no positive impact on helping the housing market.
The bottom line: The resumption of easy money policy by the Federal Reserve in the aftermath of the 2008 financial crisis has re-affirmed and broadened the positive correlation of different asset categories, undermining the effectiveness of asset diversification strategy in reducing market risk.
After sagging in the summer months to a degree that had the Federal Reserve step in during September with a promise of additional stimulus, economic reports have been quite positive in the last two months.
The rally came after a positive finish on Wall Street Wednesday, following upbeat jobs data and a report pointing to the possibility the Federal Reserve could take more steps to boost the economy if needed.
China's benchmark lending rate is slightly positive but this understates the extent of its recent monetary tightening: the central bank has also sharply raised banks' reserve requirements and capped credit growth.
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