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| Version 3 | Version 4 |
|---|---|
| Global stocks see further falls | Global stocks see further falls |
| (10 minutes later) | |
| European stocks have fallen sharply in early Wednesday trading after more declines in the US as housing market and credit fears persist. | European stocks have fallen sharply in early Wednesday trading after more declines in the US as housing market and credit fears persist. |
| London's FTSE 100 index was down 43 points to 6,059 in initial exchanges, while Frankfurt's Dax index had lost 57 points to 7,373. | London's FTSE 100 index was down 43 points to 6,059 in initial exchanges, while Frankfurt's Dax index had lost 57 points to 7,373. |
| The latest share falls was caused by Merrill Lynch brokers warning that the credit squeeze will hurt bank profits. | The latest share falls was caused by Merrill Lynch brokers warning that the credit squeeze will hurt bank profits. |
| Investor confidence was also hit by weak US consumer sentiment figures. | Investor confidence was also hit by weak US consumer sentiment figures. |
| The Dax was also hit by a fall in German consumer confidence in July, blamed on the turmoil in the markets. | |
| Europe's early falls were mirrored in the Far East, where Japan's main Nikkei index closed down 275 points, or 1.7%, to 16,013. | Europe's early falls were mirrored in the Far East, where Japan's main Nikkei index closed down 275 points, or 1.7%, to 16,013. |
| Wall Street's Dow Jones closed down 280 points, or 2.1%, to 13,042 on Tuesday. | Wall Street's Dow Jones closed down 280 points, or 2.1%, to 13,042 on Tuesday. |
| Stock downgrades | Stock downgrades |
| The latest warning about the impact of the problems in the credit market - centred on the crisis in the US sub-prime mortgage sector - was given by brokers at investment bank Merrill Lynch. | The latest warning about the impact of the problems in the credit market - centred on the crisis in the US sub-prime mortgage sector - was given by brokers at investment bank Merrill Lynch. |
| It's like walking in the dark because we have yet to get the full picture of the sub-prime loan problems Analyst Shoji Yoshikoshi href="/1/hi/business/6953779.stm">Market jitters and your wallet | |
| They downgraded their opinion of stocks in three firms exposed to the sub-prime sector - Bear Stearns, Lehman Brothers and Citigroup. | They downgraded their opinion of stocks in three firms exposed to the sub-prime sector - Bear Stearns, Lehman Brothers and Citigroup. |
| The mood of global investors has been further hit by released minutes of the most recent meeting of the Federal Reserve, which suggested a US interest rate cut might not be imminent. | The mood of global investors has been further hit by released minutes of the most recent meeting of the Federal Reserve, which suggested a US interest rate cut might not be imminent. |
| The minutes showed that while the committee's members realised that the problems in the financial markets might need a policy response, they did not act at the start of this month because they were keeping their focus on inflation. | The minutes showed that while the committee's members realised that the problems in the financial markets might need a policy response, they did not act at the start of this month because they were keeping their focus on inflation. |
| "Everyone is scared," said Shoji Yoshikoshi, senior investment strategist at Mitsubishi Capital UFJ Securities. | "Everyone is scared," said Shoji Yoshikoshi, senior investment strategist at Mitsubishi Capital UFJ Securities. |
| "It's like walking in the dark because we have yet to get the full picture of the sub-prime loan problems." | "It's like walking in the dark because we have yet to get the full picture of the sub-prime loan problems." |
| The sub-prime mortgage sector gives higher risk loans to people with poor credit histories. | The sub-prime mortgage sector gives higher risk loans to people with poor credit histories. |
| Sub-prime default levels have risen to record highs in the US over the past year in the face of higher mortgage rates. | Sub-prime default levels have risen to record highs in the US over the past year in the face of higher mortgage rates. |
| This has raised fears that this could hamper credit availability in the broader market, not just in America, but around the world. | This has raised fears that this could hamper credit availability in the broader market, not just in America, but around the world. |