This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7620318.stm

The article has changed 16 times. There is an RSS feed of changes available.

Version 4 Version 5
Markets stage cautious recovery Investors edgy as US stocks fall
(about 4 hours later)
Global stocks have staged a tentative recovery as investors assessed yet more dramatic financial news. US stock markets sank in early trade on fears the bailout of insurance giant AIG would not be enough to dispel the gloom engulfing the financial world.
The US government's rescue of troubled insurer AIG and a potential takeover of UK lender HBOS boosted confidence but markets were still volatile. AIG's rescue and a potential takeover of UK lender HBOS had earlier boosted confidence in Asia and Europe.
The FTSE 100 index of top UK shares was up 1.2% at 5,086 points, rising with other European markets. But markets were volatile as nervous investors tried to make sense of the dramatic events in recent days.
Stocks in Tokyo, Taipei, and Seoul all rose, although prices in Hong Kong, Shanghai and Australia lost ground. The widely watched Dow Jones industrial average shed some 200 points, or 1.89%, to 10,850.10 in early afternoon trade.
UK banking shares experienced the most volatile trading. Shares in top UK mortgage lender HBOS, which has faced heavy selling this week, had a rollercoaster ride.
Top UK mortgage lender HBOS, which has faced heavy selling this week, fell as much as 50% before recovering after the BBC learned that it was in advanced talks to be taken over by Lloyds TSB. HBOS shares fell some 50% before initially recovering after it emerged that it was in advanced talks to be taken over by Lloyds TSB, only to fall again later, slipping 20%.
It has been a tumultuous week on financial markets, with significant changes in the financial landscape.
The global financial crisis In pictures
Key events on Wednesday included:
  • Beleaguered HBOS in merger talks with Lloyds TSB after a steep fall in its share price
  • US insurance giant AIG being bailed out by the US government
  • Volatile stock markets as global investors remain nervous
  • Trading on the Russian stock exchange being suspended
  • Barclays snapping up key assets from Lehman Brothers after its bankruptcy
The FTSE 100 index of leading shares was down 1.85% at 4932.8 reversing earlier gains, with banking shares remaining volatile.
I don't think anyone has got any or much confidence in market direction for more than a few days Darren Winder, CazenoveI don't think anyone has got any or much confidence in market direction for more than a few days Darren Winder, Cazenove
HBOS shares were down 2% at 178p in lunchtime trade. Shares in Barclays were up 11.4%, Lloyds TSB climbed 15.6% while Royal Bank of Scotland was down 2.2%. Shares in Barclays were up 5%, while Lloyds TSB shed 0.1%, reversing earlier gains, while Royal Bank of Scotland was down 10%.
Topsy-turvy tradeTopsy-turvy trade
Trade is likely to remain rocky amid concern that financial system instability will continue after the dramatic events of the past few days.Trade is likely to remain rocky amid concern that financial system instability will continue after the dramatic events of the past few days.
"I don't think anyone has got any or much confidence in market direction for more than a few days," said Darren Winder, a strategist at Cazenove."I don't think anyone has got any or much confidence in market direction for more than a few days," said Darren Winder, a strategist at Cazenove.
THE DAY'S KEY EVENTS Beleaguered HBOS is in merger talks with Lloyds TSB after a steep fall in its share priceUS insurance giant AIG bailed out by US governmentStock markets are volatile as global investors remain nervousTrading on the Russian stock exchange has been suspended.Barclays has snapped up key assets from Lehman Brothers after its bankruptcy.
AIG's bail-out follows the collapse of US investment bank Lehman Brothers, which caused share prices to plummet across the world's financial markets.AIG's bail-out follows the collapse of US investment bank Lehman Brothers, which caused share prices to plummet across the world's financial markets.
Another investment bank, Merrill Lynch, has been sold off to Bank of America.Another investment bank, Merrill Lynch, has been sold off to Bank of America.
France's Cac 40 share index rose 0.3%, while Germany's Dax index was up 0.6% after weaving in and out of negative territory. France's Cac 40 share index was down 0.24%, while Germany's Dax index was 0.64% lower, reversing earlier gains as Wall Street opened.
Russia's stock exchange suspended trade following steep falls in shares.Russia's stock exchange suspended trade following steep falls in shares.
Asian shares had a mixed session. Stocks in Tokyo, Taipei, and Seoul all rose, although prices in Hong Kong, Shanghai and Australia lost ground.
Japan's Nikkei 225 index ended up 1.2% at 11,749.79, having risen by as much as 2.3% earlier in the day. The index had hit a three-year low on Tuesday.Japan's Nikkei 225 index ended up 1.2% at 11,749.79, having risen by as much as 2.3% earlier in the day. The index had hit a three-year low on Tuesday.
Hong Kong's Hang Seng index ended down 3.6% at 17,637.19 points.Hong Kong's Hang Seng index ended down 3.6% at 17,637.19 points.