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/6957972.stm
The article has changed 14 times. There is an RSS feed of changes available.
Version 4 | Version 5 |
---|---|
Stocks rebound on rate cut hope | |
(about 2 hours later) | |
US and European stocks have risen strongly, spurred by hopes of an interest rate cut by the US Federal Reserve to help calm market volatility. | |
The Dow Jones index opened up more than 100 points, while London's FTSE 100 was 1.6% ahead, France's Cac put on 2% and Germany's Dax climbed 1.1%. | |
Earlier on Wednesday most Asian markets closed in the black. | |
Hopes of a US rate cut came after a US senator said the Fed would use "all available tools" to calm credit fears. | Hopes of a US rate cut came after a US senator said the Fed would use "all available tools" to calm credit fears. |
On Wall Street, the tech-based Nasdaq added 0.94% to 2,544.93 in early trading while the Dow Jones gained 108.1 points to 13,199. | |
'Some comfort' | |
Recent market turmoil has been prompted by problems in the US mortgage market. | Recent market turmoil has been prompted by problems in the US mortgage market. |
But some analysts in Asia think the worst of the recent volatility is over. | But some analysts in Asia think the worst of the recent volatility is over. |
"Fears about the fallout from the US sub-prime mortgage sector are receding. Last week's drops appear overdone," said Lee Woo-hyun, an analyst at Kyobo Securities. | "Fears about the fallout from the US sub-prime mortgage sector are receding. Last week's drops appear overdone," said Lee Woo-hyun, an analyst at Kyobo Securities. |
"The markets are likely to continue the rebound." | "The markets are likely to continue the rebound." |
Recent falls in shares worldwide have come in the wake of problems in the US sub-prime mortgage market, the sector that lends to people with poor credit records or who are on lower incomes. | Recent falls in shares worldwide have come in the wake of problems in the US sub-prime mortgage market, the sector that lends to people with poor credit records or who are on lower incomes. |
A rise in defaults on home loans in the sub-prime market has raised fears that it will become harder for homebuyers and businesses to get loans, which could hamper investment and growth. | A rise in defaults on home loans in the sub-prime market has raised fears that it will become harder for homebuyers and businesses to get loans, which could hamper investment and growth. |
The stock market falls have led to many investors seeking to put their money into safer financial instruments, such as government bonds. | The stock market falls have led to many investors seeking to put their money into safer financial instruments, such as government bonds. |
Asian markets reacted well to comments made by US Senate Banking Committee chairman Senator Christopher Dodd after he had met Federal Reserve head Ben Bernanke and Treasury Secretary Henry Paulson. | Asian markets reacted well to comments made by US Senate Banking Committee chairman Senator Christopher Dodd after he had met Federal Reserve head Ben Bernanke and Treasury Secretary Henry Paulson. |
Mr Dodd said that Mr Bernanke "intends to utilise all the tools available to him" to try to prevent US housing and credit problems from worsening. | Mr Dodd said that Mr Bernanke "intends to utilise all the tools available to him" to try to prevent US housing and credit problems from worsening. |
Japanese investors remain wary however ahead of a key Bank of Japan meeting on Thursday, which will decide whether to raise interest rates or not. | Japanese investors remain wary however ahead of a key Bank of Japan meeting on Thursday, which will decide whether to raise interest rates or not. |
"The fact that the US stock market has stabilised to an extent gives investors some comfort," said Katsuhiko Hiroshige, an analyst at Traders & Co in Tokyo. | "The fact that the US stock market has stabilised to an extent gives investors some comfort," said Katsuhiko Hiroshige, an analyst at Traders & Co in Tokyo. |
But, he added, "it will be a while before investor sentiment recovers completely from the trauma of recent losses". | But, he added, "it will be a while before investor sentiment recovers completely from the trauma of recent losses". |