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| Global stocks in volatile trading | Global stocks in volatile trading |
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| Global shares have seen mixed trading on Wednesday, with US housing and credit woes continuing to cast a shadow over stock markets. | |
| US shares opened strongly, rebounding from Tuesday's heavy falls, with the Dow Jones index up 0.8% as investors looked to pick up bargains. | |
| The UK's FTSE 100 index overcame early losses to rise 0.5% to 6,130 by early afternoon, but Germany's Dax lost 0.1%. | |
| A warning that a credit squeeze would hurt bank profits added to worries. | |
| Earlier on Tuesday, Japan's main Nikkei index had closed down 275 points, or 1.7%, at 16,013. | |
| Rate cut hope | |
| The Dow Jones was up 92 points at 13,133.9 in early trade on Wednesday, having closed 280 points, or 2.1% down, on Tuesday. Meanwhile the Nasdaq added 0.84% to 2,521.8. | |
| Analysts said that investors hoped that the summer volatility on global markets would be eased if, as many expect, the Federal Reserve cuts interest rates next month. | |
| 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 on Tuesday. | |
| 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 was further hit on Tuesday 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. |