The US federal deficit topped one trillion US dollars (€714.7bn) for the first time ever and could grow to nearly two trillion (€1.42 trillion) by this autumn, intensifying fears about higher interest rates, inflation and the strength of the dollar.

The US Federal Reserve granted American Express’ request to become a commercial bank today, opening the door for the credit card giant to accept deposits and permanently access financing.

The US stock market took another nosedive as the American banking system appeared even shakier and investors worried that the financial crisis is spinning so far out of control that even government rescues cannot stop it.

US stocks soared today as investors welcomed strong earnings from financial services companies, upbeat economic data and some reassuring news from the Federal Reserve.

Crude futures rose to a new high near $49 a barrel as the threat of sabotage to Iraqi oil infrastructure loomed larger than promises from Baghdad to boost exports in coming days.