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| Wall Street makes cautious start | Wall Street makes cautious start |
| (about 1 hour later) | |
| US stocks have made a mixed start to trade on Thursday, with the main indexes broadly flat. | |
| After rising in the first few minutes of trade, the Dow Jones index fell back to stand up 17.7 points at 13,254 while the Nasdaq was down 7.74 at 2,545. | After rising in the first few minutes of trade, the Dow Jones index fell back to stand up 17.7 points at 13,254 while the Nasdaq was down 7.74 at 2,545. |
| The flat start in the US trimmed gains that had been seen on European markets. | The flat start in the US trimmed gains that had been seen on European markets. |
| In early afternoon trade in Europe, Germany's Dax index was up 0.5%, France's Cac 40 was 0.3% higher while London's FTSE 100 was barely changed. | In early afternoon trade in Europe, Germany's Dax index was up 0.5%, France's Cac 40 was 0.3% higher while London's FTSE 100 was barely changed. |
| Earlier, Japan's benchmark Nikkei index had closed up 2.6%, while China's main stock index hit another record high. | Earlier, Japan's benchmark Nikkei index had closed up 2.6%, while China's main stock index hit another record high. |
| After several days of gains, analysts have begun to hope that the worst of the recent market turmoil may be over. | After several days of gains, analysts have begun to hope that the worst of the recent market turmoil may be over. |
| Yet Tony Russell, senior equities adviser at ABN AMRO Morgans, cautioned that volatility is likely to continue for some time. | Yet Tony Russell, senior equities adviser at ABN AMRO Morgans, cautioned that volatility is likely to continue for some time. |
| "The market is getting more comfortable...but confidence can certainly be shattered by any more revelations," he said. | "The market is getting more comfortable...but confidence can certainly be shattered by any more revelations," he said. |
| Promising signs? | Promising signs? |
| The recent market turmoil was triggered by problems in the US mortgage market, and especially in the so-called sub-prime sector that makes loans to people with poor credit history. | The recent market turmoil was triggered by problems in the US mortgage market, and especially in the so-called sub-prime sector that makes loans to people with poor credit history. |
| Sub-prime default levels rose following higher interest rates in the US, raising fears that this could hamper credit availability in the broader market, beyond the home loan sector. | Sub-prime default levels rose following higher interest rates in the US, raising fears that this could hamper credit availability in the broader market, beyond the home loan sector. |
| However, news on Wednesday that Bank of America plans to invest $2bn in one of the sub-prime market leaders, struggling US mortgage firm Countrywide Financial, was hailed as a promising sign. | However, news on Wednesday that Bank of America plans to invest $2bn in one of the sub-prime market leaders, struggling US mortgage firm Countrywide Financial, was hailed as a promising sign. |
| "The fact that M&A [mergers and acquisitions] activity resurfaced in the US market means liquidity may have started to come back," said Masayoshi Yano, senior manager of investment information at Tokai Tokyo Securities. | "The fact that M&A [mergers and acquisitions] activity resurfaced in the US market means liquidity may have started to come back," said Masayoshi Yano, senior manager of investment information at Tokai Tokyo Securities. |