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/7203966.stm
The article has changed 23 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Asian markets rally after US cut | Asian markets rally after US cut |
| (about 2 hours later) | |
| Asian stocks have risen sharply after a dramatic interest rate cut by the US Federal Reserve helped calm anxiety. | |
| Australia, South Korea and Hong Kong saw share prices rebound, reversing days of losses and easing fears of a global recession. | |
| Japan's benchmark Nikkei 225 index climbed 3%, having plunged nearly 6% on Tuesday in its worst fall since 9/11. | |
| Australian stocks followed their worst day of trading in 25 years by bouncing back more than 4%. | |
| In another move, President Bush and congressional leaders agreed to act quickly to implement a $145bn (£74bn) rescue package for the US economy. | |
| Markets bounce back | |
| In Hong Kong, the Hang Seng Index rose almost 5%, rebounding from Tuesday's drop of nearly 9%. | In Hong Kong, the Hang Seng Index rose almost 5%, rebounding from Tuesday's drop of nearly 9%. |
| Stocks in South Korea were up more than 2%, while Shanghai's Composite Index rose almost 3% in early trade, after a 7% fall on Tuesday. | Stocks in South Korea were up more than 2%, while Shanghai's Composite Index rose almost 3% in early trade, after a 7% fall on Tuesday. |
| Global shares had rebounded after the Fed cut its main interest rate to 3.5% from 4.25% on Tuesday in an attempt to pull the world's biggest economy away from a recession. | Global shares had rebounded after the Fed cut its main interest rate to 3.5% from 4.25% on Tuesday in an attempt to pull the world's biggest economy away from a recession. |
| Japanese Finance Minister Fukushiro Nukaga welcomed the move, saying he hoped it would have a positive effect on Japan's markets. | |
| I expect the move will stabilize the global economy as a whole Fukushiro Nukaga Japanese Finance Minister Bear market may be looming | |
| "I expect the move will stabilize US financial markets and the global economy as a whole," he said. | |
| On Tuesday, the UK's FTSE 100 index closed 2.9% higher after falling more than 4% earlier on the back of the US rates cut. France's Cac also bounced back but Germany's Dax closed 0.3% down. | |
| In the US, the Dow Jones and S&P 500 indexes fell, but their declines were less sharp than they had been earlier. | In the US, the Dow Jones and S&P 500 indexes fell, but their declines were less sharp than they had been earlier. |
| Gaining ground | Gaining ground |
| The rally came after global markets suffered serious losses on Monday, and as investors continued to dump shares in early trading on Tuesday. | The rally came after global markets suffered serious losses on Monday, and as investors continued to dump shares in early trading on Tuesday. |
| The fears about slowing global growth were so pronounced that they spread to other asset classes, hurting commodities such as oil and gold. | The fears about slowing global growth were so pronounced that they spread to other asset classes, hurting commodities such as oil and gold. |
| But most stock market indexes and commodities quickly gained ground after their earlier losses in response to the Fed's biggest interest rate cut in more than two decades. | But most stock market indexes and commodities quickly gained ground after their earlier losses in response to the Fed's biggest interest rate cut in more than two decades. |
| The UK's benchmark FTSE 100 index of largest shares finished 162 points, or 2.9%, ahead at 5,740.1 and the French Cac 40 index gained 2%, but Germany's Dax failed to make headway, still down 0.3% at 6,769.47. | The UK's benchmark FTSE 100 index of largest shares finished 162 points, or 2.9%, ahead at 5,740.1 and the French Cac 40 index gained 2%, but Germany's Dax failed to make headway, still down 0.3% at 6,769.47. |
| In the US, shares on the Dow Jones Industrial Average ended the session 1% lower at 11,971.19, while the broader S&P 500 index also shed 1%. | In the US, shares on the Dow Jones Industrial Average ended the session 1% lower at 11,971.19, while the broader S&P 500 index also shed 1%. |
| Caution rules | Caution rules |
| The recent stock market declines came after many investors were disappointed by US President George W Bush's proposed emergency stimulus plan to boost the economy. | |
| At the same time, banks were reporting increasing losses stemming from problems in the US housing market, and some of the main bellwether companies were not meeting analysts' earnings estimates. | At the same time, banks were reporting increasing losses stemming from problems in the US housing market, and some of the main bellwether companies were not meeting analysts' earnings estimates. |
| Signs of the tougher economic environment have also been evident in the Christmas corporate trading statements and economic data on both sides of the Atlantic. | Signs of the tougher economic environment have also been evident in the Christmas corporate trading statements and economic data on both sides of the Atlantic. |
| Many analysts said that while the Fed's rate cut might help to ease concerns in the short-term, stock markets were set to be volatile in coming weeks. | Many analysts said that while the Fed's rate cut might help to ease concerns in the short-term, stock markets were set to be volatile in coming weeks. |
| "Caution still rules the long-term picture," said Markus Steinbeis of Pioneer Investments. | "Caution still rules the long-term picture," said Markus Steinbeis of Pioneer Investments. |