Stocks have staged a rebound today (November 27th) after America's biggest bank, Citigroup, received a much-needed $7.5 billion capital injection from Gulf-based investors.
The Abu Dhabi Investment Authority (ADIA) will bolster the mortgage loss-stricken bank, with the news buoying US markets and sending the Dow Jones industrial average up 163.47 points (1.28 per cent).
Citigroup insisted that the investment was passive with the ADIA obtaining no rights to influence board member appointments but despite concerns of the price paid for the injection, a stock market up-turn read the Citigroup news positively.
Hugh Johnson, chief investment officer of Albany's Johnson Illington Advisors, told Reuters: "When you have the market decline as much as it did in the last week or so, it doesn't take much to bring out all the bottom-fishing bargain hunters.
"The Citigroup news is what did it today and at least for one day, investors are putting their bearishness on hold."
The decline in bearishness could be a very temporary one, with news of a two-year low in US consumer confidence leading a host of negative market data that emerged today.