The dollar hit a record low against the euro and a basket of major currencies on Wednesday and the yen rose sharply as concerns on the health of the U.S. economy and global credit markets saw investors flea risky carry trades.
Stocks slid on Wednesday as fears of more credit losses and mortgage defaults sunk shares of financial services companies, while worries about the impact of near record crude oil prices hit retailers and shares of big manufacturers.
World stocks and the dollar tumbled on Wednesday while the yen and government bonds soared as concerns for the health of the U.S. economy stirred the biggest wave of risk aversion since August in global financial markets.
Concerns of a relapse in financial conditions trumped hawkish rhetoric from the minutes of the U.S. Federal Reserve's October rate meeting, keeping market expectations for a near-term interest-rate cut intact. Minutes from the October 30-31 Federal Open Market Committee meeting showed the Fed's decision to cut benchmark rates last month was a close call and an insurance policy against the risk the economy would weaken even more than officials expect.
The Federal Reserve debated in October whether it needed more evidence the economy had been damaged by the housing slump and market turmoil before deciding to cut rates as an insurance policy, minutes of the meeting released on Tuesday show.
The dollar dropped to a record low versus the euro on Tuesday, amid worries that credit-market turmoil will result in slower economic growth and lower interest rates from the Federal Reserve.
Stocks rose slightly following strong results from Hewlett-Packard Co. and a gain in the price of oil boosted energy companies which encouraged bargain investors to trade before the release of minutes from the Federal Reserve's last meeting.
Investor confidence sank to its second lowest level in at least nine years in November as fears about the credit crisis combined with worries over a deteriorating world economy, State Street said on Tuesday.
World stocks rebounded on Tuesday and the dollar fell sharply, hitting new record lows against the euro and Swiss franc, as speculation swirled that the U.S. Federal Reserve would meet to cut interest rates.
European shares rose early on Tuesday as tech and energy stocks helped the market bounce back from the previous session's sharp drop but banks such as UBS and Credit Suisse slipped again on credit market concerns.
The dollar hit a record low against the euro on Tuesday as U.S. homebuilding permits fell to a 14-year low in October, stoking fears about housing sector weakness and expectations of lower U.S. interest rates.
Stock index futures trimmed gains and were well off their session highs on Tuesday after Freddie Mac, the No. 2 U.S. mortgage finance company, posted a wider third-quarter loss.
Oil rose on Monday on the weakening U.S. dollar and concerns over whether OPEC will ramp up production next month to ease supply worries.
U.S. crude traded 10 cents higher at $93.94 by 1:49 p.m. EST, after striking $95.15 earlier. London Brent crude rose 12 cents to $91.74.
Stocks slid on Monday as a brokerage downgrade of Citigroup Inc sparked a sell-off in financial services companies on concerns about credit losses and the housing slump. Goldman Sachs cut Citigroup to sell and said the bank may have to write off $15 billion over the next two quarters as mortgage losses reduce earnings.
Stocks fell on Monday as a downgrade of Citigroup, the No. 1 U.S. bank, fueled a sell-off in shares of financial services companies on renewed worry about mounting credit losses.
The yen strengthened on Monday, as investors' appetite for risk was dented by worries of more trouble in the global financial sector and consequent falls in equity markets.
World stock markets fell on Monday, with European shares slipping into losing territory for the year in another tremor over the credit crunch, while Japan's yen gained as investors cut back on their riskier holdings.
Stock futures fell on Monday after Goldman Sachs added Citigroup Inc to its sell list, citing prospects for more credit losses at the No. 1 U.S. bank.
Asian stocks made a cautious advance on Monday following a recovery on Wall Street, with gains for oil prices shoring up demand for energy shares.
NEW YORK, Nov 16 (Reuters) - U.S. stocks rose on Friday after a day of sharp price swings, helping the S&P 500 narrowly avert a third straight week of losses as bargain-hunting lifted the beaten-down technology sector while shares of oil companies advanced on buoyant crude prices.
U.S. stocks are likely to be volatile next week in trade thinned by the Thanksgiving holiday, with investors focused on an expanded look at the Federal Reserve's view of interest rates and the economy.
Package delivery company FedEx Corp cut its earnings forecast for the current quarter on Friday, citing higher fuel prices and weaker demand for ground shipments too small to fill a truck.
U.S. stocks on Friday fell for a third day following lowered earnings forecasts by Starbucks Corp and FedEx Corp.,making investors uneasy about the outlook for consumer spending.
Fears that the credit crisis could deepen rattled global stock investors on Friday and boosted demand for traditionally less risky assets.
The yen strengthened on Friday as jittery investors took cues from falling stock markets to continue a move out of relatively risky carry trades funded by cheap borrowing in the Japanese currency.
Stock index futures on Friday signaled a bounce-back after recent losses, while investor worries about weakening consumer spending and credit market losses could limit gains.
Chinese lunchtime television on Friday gave ordinary people a basic tip on how to play the currency markets: sell the dollar!
The dollar strengthened against the euro but fell against the yen on Thursday amid continuing fears in credit markets and falling stocks.
Stocks declined further in a skittish session on Thursday as investors fretted about the likelihood of more credit losses at big financial services companies. Caution also weighed on the market following an upsurge in volatility that has tended to rock stocks around the close of trading in recent days.
U.S. stocks fell on Thursday for a second day, led by a drop in financial shares amid news of further credit market problems, lower retail sales at J.C. Penney, and Wells Fargo's dour assessment of the housing market.
