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/7668732.stm

The article has changed 21 times. There is an RSS feed of changes available.

Version 19 Version 20
Recession fears hit Wall Street Recession fears hit Wall Street
(30 minutes later)
Fears the global economy may not be able to avoid a recession pushed US share prices lower, despite a $250bn government bank rescue plan.Fears the global economy may not be able to avoid a recession pushed US share prices lower, despite a $250bn government bank rescue plan.
The Dow Jones index ended down 0.82% as investors turned their attention to the worsening economic outlook.The Dow Jones index ended down 0.82% as investors turned their attention to the worsening economic outlook.
While bank shares were largely higher because of the US Treasury rescue plan, technology stocks fell.While bank shares were largely higher because of the US Treasury rescue plan, technology stocks fell.
Traders say Wall Street is expected to be nervous in the weeks ahead because of economic worries.Traders say Wall Street is expected to be nervous in the weeks ahead because of economic worries.
Among financial stocks, Morgan Stanley rose 21.2%, Bank of America was up 16.4%, Citigroup soared 18.2% and Wells Fargo rose 10.2%. "The tone is cautious, I don't think anybody is pile-driving into the market," said Lincoln Anderson, chief investment officer at LPL Financial in Boston.
Earnings worries "We certainly expect heightened volatility for a fair amount of time while we sort out just exactly what's going on," he added.
But in the technology sector, profit worries drove chipmaker Intel down 6.2%. DOW JONES INDUSTRIAL AVERAGE: 14 October 2008*All Times GMT
Intel then rose modestly in after-hours trading as it reported a 12% rise in its third quarter earnings.
Earlier stock markets worldwide rose, as investors bet that state action to strengthen the banking system will ease the credit crisis.
In Europe, Germany's Dax ended up 2.7%, while the UK's FTSE added 3.2%.
Investors are more confident that a financial meltdown has been averted.
Analysts said profit-taking started emerging in the market following Monday's 11% rise in the index.
Investors worldwide welcomed the fresh moves to deal with the financial crisis.
If HM Treasury were the corporate finance department of one of those battered investment banks that are now being rescued, it would be collecting a very fat fee Robert Peston, BBC business editor Read Robert's blogUS unveils $250bn banking rescue
In Japan, the Nikkei-225 index ended up 14.2% at 9,447.57 points - its biggest one-day gain to date - as it caught up with gains elsewhere after a public holiday on Monday.
Hong Kong's Hang Seng index ended up 520.4 points, or 3.2%, at 16,832.56. South Korea's index finished the day 6.14% higher.
In India, the benchmark Sensex closed up 174.31 points, or 1.54%, at 11,483 points.
"There's relief that banks probably won't go bankrupt thanks to the capital injection plans," said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments.
"But after rebounding to some extent, we will inevitably enter a phase of thinking about how the steps will actually impact the global economy."
Japan said it was considering pumping taxpayers' money into regional banks to make sure small firms can get loans.
Rescue plans
The US government has announced a $250bn (£143bn) plan to purchase stakes in a wide variety of banks in an effort to restore confidence in the sector.The US government has announced a $250bn (£143bn) plan to purchase stakes in a wide variety of banks in an effort to restore confidence in the sector.
Recession fears
President George W Bush said the move would help to return stability to the US banking sector and ultimately help preserve free markets.President George W Bush said the move would help to return stability to the US banking sector and ultimately help preserve free markets.
US federal authorities will also temporarily insure most new debt issued by US banks and expand deposit insurance.US federal authorities will also temporarily insure most new debt issued by US banks and expand deposit insurance.
DOW JONES INDUSTRIAL AVERAGE: 14 October 2008*All Times GMT Among financial stocks, Morgan Stanley rose 21.2%, Bank of America was up 16.4%, Citigroup soared 18.2% and Wells Fargo rose 10.2%.
The US move follows similar steps taken by the UK government, which on Monday said it would inject up to £37bn of taxpayers cash into Royal Bank of Scotland, Lloyds TSB and HBOS. If HM Treasury were the corporate finance department of one of those battered investment banks that are now being rescued, it would be collecting a very fat fee Robert Peston, BBC business editor class="" href="http://www.bbc.co.uk/blogs/thereporters/robertpeston/">Read Robert's blog class="" href="/1/hi/business/7668704.stm">US unveils $250bn banking rescue
Likewise, European governments have said they are allocating more than 1 trillion euros to protect the continent's banks through guarantees and other emergency measures. Investors have welcomed the US government's action but fears of a recession rather than a financial meltdown have now come to dominate thinking.
"The world is not going back to where it was before September," said Andrew Busch, a strategist with BMO Capital Markets in Chicago.
"The outlook for the economy has soured and we're still not sure by how much," he said.
In the US technology sector, profit worries drove chipmaker Intel down 6.2%.
Intel then rose modestly in after-hours trading as it reported a 12% rise in its third-quarter earnings.
Rescue plans
Earlier stock markets worldwide had risen, as investors bet that state action to strengthen the banking system would ease the credit crisis.
In Europe, Germany's Dax ended up 2.7%, while the UK's FTSE added 3.2%.
Nobel prize-winning economist Joseph Stiglitz assesses the situationNobel prize-winning economist Joseph Stiglitz assesses the situation
The US move follows similar steps taken by the UK and other European governments.
BBC business editor Robert Peston said the US and eurozone plans were variations on the template launched a week ago by the UK government despite reservations expressed by other leaders.BBC business editor Robert Peston said the US and eurozone plans were variations on the template launched a week ago by the UK government despite reservations expressed by other leaders.
"If HM Treasury were the corporate finance department of one of those battered investment banks that are now being rescued, it would be collecting a very fat fee," he said."If HM Treasury were the corporate finance department of one of those battered investment banks that are now being rescued, it would be collecting a very fat fee," he said.
Australian action
Australia's main share index ended the day up 3.7% after Australian Prime Minister Kevin Rudd announced a 10.4bn Australian dollar ($7.3bn) economic stimulus package.
It will allow for one-off payments to the country's low-wage earners and pensioners, and follows earlier announcements of guarantees of bank deposits for three years.
Trading has resumed on the Icelandic stock exchange for the first time since its suspension last Thursday.
The main share index immediately fell 76%, but officials said this was a statistical anomaly caused by trading in financial firms remaining suspended.
We would like to speak to people directly affected by the global financial crisis. If you own or work for a company experiencing difficulties or are prepared to speak to the BBC about the problems caused for your personal finances, send us your comments using the form below.We would like to speak to people directly affected by the global financial crisis. If you own or work for a company experiencing difficulties or are prepared to speak to the BBC about the problems caused for your personal finances, send us your comments using the form below.
We would also like to know if you have any questions about the current financial situation, if you do please send them on the form below.We would also like to know if you have any questions about the current financial situation, if you do please send them on the form below.
If you wish to make a general comment, do so by visiting our Have Your Say debate - please do not comment here.If you wish to make a general comment, do so by visiting our Have Your Say debate - please do not comment here.
Name
 Name