Article: Australian Market Report of October 19: US Deficit Hits Record High

The Dow index gave up last week's success and slipped back slightly over the weekend. US and European stock markets closed lower on Friday after the latest US corporate results disappointed high hopes and pushed Wall Street back down through the key 10,000 points level.

The U.S. budget deficit hit a record US$1.4 trillion to the end of the fiscal year, the US government said on Friday, as the recession and a series of bank rescues cut a hole in public finances. That figure was US$162 billion smaller than the White House had forecast in August, but it still amounted to 10 percent of total U.S. economic output, the most for any budget shortfall since World War Two.

The Australian dollar ...

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