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| Version 3 | Version 4 |
|---|---|
| World markets jittery on US woes | World markets jittery on US woes |
| (30 minutes later) | |
| Global share prices have continued their recent volatility on Thursday, as fears remain over the US economy and the weakness of the dollar. | Global share prices have continued their recent volatility on Thursday, as fears remain over the US economy and the weakness of the dollar. |
| The UK's FTSE 100 index fell in early trading, before rebounding to climb 57 points to 6,128 by mid-afternoon. | The UK's FTSE 100 index fell in early trading, before rebounding to climb 57 points to 6,128 by mid-afternoon. |
| Germany's Dax and Paris' Cac were also up, but the main Australian and Hong Kong indexes had earlier ended down. | Germany's Dax and Paris' Cac were also up, but the main Australian and Hong Kong indexes had earlier ended down. |
| The volatility follows sharp falls in US stocks on Wednesday. US markets are closed for Thanksgiving on Thursday. | The volatility follows sharp falls in US stocks on Wednesday. US markets are closed for Thanksgiving on Thursday. |
| Analysts said that markets probably would be jittery for several months. | Analysts said that markets probably would be jittery for several months. |
| Rate cut? | Rate cut? |
| The worry for many investors is that problems in the US housing market, coupled with higher interest rates and a global credit crunch, will spread to the wider economy, slowing annual growth. | The worry for many investors is that problems in the US housing market, coupled with higher interest rates and a global credit crunch, will spread to the wider economy, slowing annual growth. |
| We just can't seem to break free of the financial concerns that are out there Bucky Hellwig, Morgan Asset Management | We just can't seem to break free of the financial concerns that are out there Bucky Hellwig, Morgan Asset Management |
| Market expectations of a further US rate cut were buttressed on Tuesday by a statement from the Federal Reserve which lowered its growth forecast for next year, underpinning the fears of a slowdown. | Market expectations of a further US rate cut were buttressed on Tuesday by a statement from the Federal Reserve which lowered its growth forecast for next year, underpinning the fears of a slowdown. |
| The US central bank now sees the economy growing by between 1.8% and 2.5% in 2008, compared with its previous forecast of between 2.5% to 2.75%. | The US central bank now sees the economy growing by between 1.8% and 2.5% in 2008, compared with its previous forecast of between 2.5% to 2.75%. |
| The outlook for the dollar remains weak given expectations that US interest rates will have to fall to stimulate growth. | The outlook for the dollar remains weak given expectations that US interest rates will have to fall to stimulate growth. |
| Cutting interest rates tends to weaken a currency as investors shift their money to countries and regions where they can get a higher rate of return. | Cutting interest rates tends to weaken a currency as investors shift their money to countries and regions where they can get a higher rate of return. |
| The dollar touched a record low against the euro on Thursday, sliding to $1.4873 against the single European currency. It also fell against the Japanese yen. | |
| "We are looking for continued dollar weakness and would not be surprised to see the euro break $1.50 within weeks rather than months," said Teis Knuthsen, head of currency research at Danske markets in Copenhagen. | "We are looking for continued dollar weakness and would not be surprised to see the euro break $1.50 within weeks rather than months," said Teis Knuthsen, head of currency research at Danske markets in Copenhagen. |
| "Primarily, it is still the relative economic development between the US versus the rest of the world, combined with the ongoing financial crisis, which is heavily concentrated in the US," he added. | "Primarily, it is still the relative economic development between the US versus the rest of the world, combined with the ongoing financial crisis, which is heavily concentrated in the US," he added. |
| Financial concerns | Financial concerns |
| In the US on Wednesday, the worries saw the Dow Jones index drop 211.1 points, or 1.6%, to 12,799, while the Nasdaq fell 1.3%, or 34.7, to 2,562.2. | In the US on Wednesday, the worries saw the Dow Jones index drop 211.1 points, or 1.6%, to 12,799, while the Nasdaq fell 1.3%, or 34.7, to 2,562.2. |
| "We just can't seem to break free of the financial concerns that are out there," said Bucky Hellwig, of Alabama-based Morgan Asset Management. | "We just can't seem to break free of the financial concerns that are out there," said Bucky Hellwig, of Alabama-based Morgan Asset Management. |
| "The unwinding of the real estate and the mortgage market continues to weigh on investor concerns." | "The unwinding of the real estate and the mortgage market continues to weigh on investor concerns." |