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/6967575.stm
The article has changed 14 times. There is an RSS feed of changes available.
| Version 6 | Version 7 |
|---|---|
| Global stocks in volatile trading | Global stocks in volatile trading |
| (about 2 hours later) | |
| European shares have seen mixed trading on Wednesday as US housing and credit woes continue to cast a shadow over global stock markets. | European shares have seen mixed trading on Wednesday as US housing and credit woes continue to cast a shadow over global stock markets. |
| After initially falling 43 points, the UK's FTSE 100 index was up 24 points to 6,126 by early afternoon. Germany's Dax had lost 11 points to 7,419. | |
| The latest share turbulence was caused by Merrill Lynch warning that the credit squeeze will hurt bank profits. | The latest share turbulence was caused by Merrill Lynch 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. | The Dax was also hit by a fall in German consumer confidence in July, blamed on the turmoil in the markets. |
| Earlier, Japan's main Nikkei index had closed down 275 points, or 1.7%, at 16,013. | Earlier, Japan's main Nikkei index had closed down 275 points, or 1.7%, at 16,013. |
| On Tuesday, the US Dow Jones index lost 280 points, or 2.1%, to close at 13,042. | On Tuesday, the US Dow Jones index lost 280 points, or 2.1%, to close at 13,042. |
| 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 Market jitters and your wallet | 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 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. |