GLOBAL MARKETS

As fallout from the summer credit crunch spreads, Wall Street faces more job cuts -- and smaller bonuses. Investment banks have announced thousands of jobs cuts as investors stopped snapping up risky corporate loans, mortgage securities and complex asset-backed securities.

Stocks rallied on Friday after Microsoft's upbeat outlook boosted the three major indexes and a profit forecast from lender Countrywide Financial buoyed the struggling financial sector. Stocks extended their gains as the weekend approached, in a sign investors are expecting the Federal Reserve to cut interest rates when it meets next week, analysts said.

China's central bank said yesterday that it is necessary to appropriately increase the regulation and control of its monetary policy, improve the formation mechanism of RMB exchange rate, and promote the RMB capital account to be convertible stably.

The dollar fell to fresh lifetime lows versus the euro and a basket of currencies on Friday as investors fretted an anticipated Federal Reserve interest rate cut next week would not be the last.

Stocks jumped on Friday, driving the Nasdaq up 2 percent briefly and S&P 500 up 1 percent, after lender Countrywide Financial Corp. said it expects to return to profitability this quarter, easing some fears about financial sector losses.

The dollar fell to fresh record lows against the euro and a basket of currencies on Friday as investors, faced with a run of weak U.S. economic data, anticipated a Federal Reserve interest rate cut next week.

Investors bet on Friday on a U.S. interest rate cut to spur slowing economic growth, lifting most world stock markets and dragging the dollar to record lows, but the price of oil hit an all-time high, adding more strains.

Asian stocks rose to an all-time high on Friday thanks to upbeat earnings from blue-chip firms such as Sony and Honda Motor, while a rally in oil prices to a record high above $91 a barrel fuelled gains in energy shares.

The technology stocks fell on Thursday despite strong profit showings by big firms including Microsoft and EMC.

Financial stocks declined on Thursday as difficulties in the credit market continued to weigh on the minds of investors.

U.S. stocks fell on Thursday as financial leaders such as American International Group and Merrill Lynch declined, fueling concerns that credit market losses will continue to hit financial shares.

Microsoft Corp lifted its full-year estimates on Thursday after posting a 23 percent rise in quarterly profit on strong demand for both computers running its operating system and Halo 3, sending its shares up 12 percent. The world's largest software maker beat even Wall Street's most bullish forecast with a net profit of $4.29 billion. Revenue rose 27 percent to $13.76 billion.

The dollar's drop is addressing problems - including a big trade deficit and slowing economy - with few ill effects.

Stocks were little changed on Thursday as a batch of weak economic data offset positive earnings from tech companies, including Motorola Inc. Data showed orders for durable goods declined unexpectedly in September. Another report showed a fall in initial jobless claims was smaller than expected. Finally, sales of new homes in September were below expectations.

U.S. Treasuries eased on Thursday, after data on new housing sales came in just short of expectations and added little to existing chances of a modest Federal Reserve interest rate cut next week.

Strong corporate earnings and speculation about another cut in U.S. interest rates boosted stocks on Thursday but the Bank of England issued a stark warning that all is not over in the credit crisis.

The dollar fell closer to a record low versus the euro on Thursday after a report showed an unexpected fall in September durable good orders, bolstering the view a slowing U.S. economy will prompt a cut in U.S. interest rates next week.

Stock futures rose on Thursday as results from mobile phone maker Motorola Inc and fellow tech leader EMC Corp helped ease worries about third-quarter earnings.

Asian indexes were mixed Thursday, with financials dropping in Japan after Mizuho Financial Group reported losses related to U.S. subprime markets, while South Korean shares jumped on Samsung Securities a day after the brokerage firm announced strong earnings.

Stocks fluctuated sharply on Wednesday, first falling on reports of declining home sales and losses related to credit problems at Merrill Lynch but rising amid speculation that the Federal Reserve could lower interest rates.

The U.S. dollar continued to fall against the yen on Wednesday amid speculation that a struggling housing market will continue to have a negative impact on the U.S. economy, adding to the view that money policy makers will make another interest rate cut next week

Stocks recovered from deep losses on Wednesday, amid talk that the Federal Reserve would act to cut the discount rate, the same day that Merrill Lynch rattled markets with its first loss in nearly six years.

U.S. treasuries posted strong gains on Wednesday amid speculation that the Federal Reserve may cut interest rates following bad news about dropping home sales and a troubling earnings report from U.S. brokerage, Merrill Lynch, which reported a bigger than expected loss.

The United States has entered a recession, according to highly-regarded investor Jim Rogers, who told Britain's Daily Telegraph newspaper on Wednesday he was switching out of the dollar and into yen, the yuan and the Swiss franc.

Stocks tumbled on Wednesday as a steep quarterly loss at Merrill Lynch & Co. Inc. and executives' warnings about possible future problems deepened investors' concern about the credit crisis.

Safe-haven assets eased from Wednesday's highs while stocks fell after U.S. investment bank Merrill Lynch posted heavy losses, which were less dire than some predictions but did not dispel investor unease over the impact of the credit crisis.

The dollar held relatively steady and the yen pared gains on Wednesday after Merrill Lynch third quarter losses were deeper than original estimates but not as bad as many traders had feared immediately before the release.

Japan's Nikkei 225 average rose 0.7% to 16,563.51, aided by a higher close on Wall Street for the second straight day, while the broader Topix index advanced 1% to 1,585.86.

U.S. Treasury prices rose Tuesday as bond traders ignored a rising stock market and gravitated towards bonds ahead of possibly weaker home sales report this week which may give the Federal Reserve a reason to jumpstart the economy with additional interest rate cuts.