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| Version 6 | Version 7 |
|---|---|
| Stocks rebound on rate cut hope | Stocks rebound on rate cut hope |
| (39 minutes 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. | 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 was almost 100 points or 0.8% ahead, while London's FTSE 100 added 1.5%, France's Cac put on 1.6% and Germany's Dax climbed 0.8%. | |
| Earlier on Wednesday most Asian markets closed in the black. | 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 0.99% or 25 points to 2,549.76 in early trading while the Dow Jones gained 90.4 points to 13,181.3. | |
| 'Some comfort' | '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". |