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Asian markets quieter in trading | Asian markets quieter in trading |
(about 3 hours later) | |
Asian stock markets have opened quietly following two days of dramatic rises. | Asian stock markets have opened quietly following two days of dramatic rises. |
In Japan, a day after its biggest-ever one-day gain, the Nikkei index was down at lunchtime by 1.4%. Shares in Australia and Taiwan were also down. | |
In New York on Tuesday, Wall Street was also slightly down at the close of trading as investors took some profits after Monday's big rises in stocks. | In New York on Tuesday, Wall Street was also slightly down at the close of trading as investors took some profits after Monday's big rises in stocks. |
Earlier US President Bush announced a $250bn (£143bn) plan to purchase stakes in banks to try to restore confidence. | Earlier US President Bush announced a $250bn (£143bn) plan to purchase stakes in banks to try to restore confidence. |
However, fears the global economy may not be able to avoid a recession pushed the Dow Jones index 0.82% as investors turned their attention to the worsening economic outlook. | However, fears the global economy may not be able to avoid a recession pushed the Dow Jones index 0.82% as investors turned their attention to the worsening economic outlook. |
Recession fears have seen profit-taking on Wall Street | Recession fears have seen profit-taking on Wall Street |
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. |
Late on Tuesday the US announced that its budget deficit had reached $455bn, the highest-ever figure. | |
This represents more than 3% of the country's gross domestic product. | |
Treasury Secretary Henry Paulson said it reflected the problems in the housing market, and slower economic growth. | |
Recession fears | 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. |
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%. | 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%. |
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 | 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 |
Investors have welcomed the US government's action but fears of a recession rather than a financial meltdown have now come to dominate thinking. | Investors have welcomed the US government's action but fears of a recession rather than a financial meltdown have now come to dominate thinking. |
Rescue plans | Rescue plans |
Earlier stock markets worldwide had risen, as investors bet that state action to strengthen the banking system would ease the credit crisis. | 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%. | 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 situation | Nobel prize-winning economist Joseph Stiglitz assesses the situation |
The US move follows similar steps taken by the UK and other European governments. | 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. |
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. |