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| Version 3 | Version 4 |
|---|---|
| Markets mixed after Fed rate cut | Markets mixed after Fed rate cut |
| (10 minutes later) | |
| Europe's major stock markets gave up early strong gains, as banking stocks came under severe pressure. | |
| By 0930 GMT London's FTSE 100 was down 29 points, in Frankfurt the Dax was up just 15 points and in Paris the Cac 40 was 20 points lower. | |
| UK based HBOS slumped as much as 17% before recovering. HSBC was down 3%. | |
| The exchanges started the session with healthy gains following Tuesday's decision by the US Federal Reserve to cut interest rates by 0.75%. | |
| In Asia, markets recovered strongly after the Fed's move. | |
| In Japan the Nikkei jumped 2.5%, while shares in Australia rose 4%. | In Japan the Nikkei jumped 2.5%, while shares in Australia rose 4%. |
| India and South Korea rose by 2%. | India and South Korea rose by 2%. |
| Wall Street | |
| On Wall Street on Tuesday, the Dow Jones stock index recovered from recent losses and registered its biggest one-day gain for more than five years. | On Wall Street on Tuesday, the Dow Jones stock index recovered from recent losses and registered its biggest one-day gain for more than five years. |
| The Fed's action was aimed at averting panic after the cut-price takeover of troubled investment bank Bear Stearns. | The Fed's action was aimed at averting panic after the cut-price takeover of troubled investment bank Bear Stearns. |
| It was forced into a fire sale to rival JP Morgan Chase for a fraction of its value, in order to avoid collapse. | It was forced into a fire sale to rival JP Morgan Chase for a fraction of its value, in order to avoid collapse. |
| HAVE YOUR SAYThe people who got into trouble are those that bought houses beyond their meansMarcus, ColombiaSend us your commentsBear Stearns has been one of the highest-profile victims of the subprime mortgage crisis, and subsequent global credit crunch. | HAVE YOUR SAYThe people who got into trouble are those that bought houses beyond their meansMarcus, ColombiaSend us your commentsBear Stearns has been one of the highest-profile victims of the subprime mortgage crisis, and subsequent global credit crunch. |
| US Treasury Secretary Henry Paulson admitted on Tuesday that the US economy was currently facing a "sharp decline", but hoped for a recovery later in the year. | US Treasury Secretary Henry Paulson admitted on Tuesday that the US economy was currently facing a "sharp decline", but hoped for a recovery later in the year. |
| The Fed has now lowered rates six times since mid-September, with the economy reeling from a credit crisis triggered by a slump in the US housing market. | The Fed has now lowered rates six times since mid-September, with the economy reeling from a credit crisis triggered by a slump in the US housing market. |
| Losses recouped | Losses recouped |
| Japan's benchmark Nikkei index fell to a 31-month low on Monday. | Japan's benchmark Nikkei index fell to a 31-month low on Monday. |
| The Federal Reserve has stepped in to try and stave off recession | The Federal Reserve has stepped in to try and stave off recession |
| But by the end of morning trading on Wednesday, a substantial amount of those losses had been recouped, says the BBC's Chris Hogg in Tokyo. | But by the end of morning trading on Wednesday, a substantial amount of those losses had been recouped, says the BBC's Chris Hogg in Tokyo. |
| Japanese banks, whose share prices were damaged by the credit crunch, performed well in early trading. | Japanese banks, whose share prices were damaged by the credit crunch, performed well in early trading. |
| The nerves of Japanese bank sector investors were soothed by better than expected results from two big US institutions on Tuesday. | The nerves of Japanese bank sector investors were soothed by better than expected results from two big US institutions on Tuesday. |
| Goldman Sachs and Lehman Brothers, reported smaller falls in profits than analysts had been expecting. | Goldman Sachs and Lehman Brothers, reported smaller falls in profits than analysts had been expecting. |
| But analysts are warning of more volatility ahead, our correspondent says. | But analysts are warning of more volatility ahead, our correspondent says. |