World stocks surged on Friday on hopes the U.S. government and central bank will act to alleviate a crisis in subprime, or poor credit quality, U.S. mortgages and ease a global bank lending squeeze the problem has triggered.
U.S. stocks fell on Thursday on mounting concerns that credit market upheaval will erode bank profits and hold back consumer spending, but optimism about corporate investment helped lift technology shares.
The U.S. commercial paper market shrank again last week and has lost 11 percent of its value in just a month, according to Federal Reserve data showing credit markets remain troubled.
U.S. stocks fell on Thursday as financial stocks dropped on credit worries, overshadowing earlier optimism about technology company profits. Lehman Brothers slashed earnings estimates on four top Wall Street banks, adding its voice to the chorus of widely followed research analysts warning credit turmoil would cut into bank profits.
Morgan Stanley has completed the UK's first residential property derivative trade with an embedded exotic option.
Thornburg Mortgage Inc said on Thursday it raised $500 million by selling convertible preferred stock, a move that will boost funding and allow it to resume making new loans after getting hit by a credit squeeze.
Heightened investor expectations of a U.S. rate cut next month soothed financial market volatility on Thursday as a Bank of Japan policymaker said some of the turbulence had been overdone.
Japan's Nikkei average rose 0.9 percent on Thursday as higher oil prices pushed up energy stocks and trading firms, while TDK Corp gained on its plan to buy Thai-based Magnecomp Precision Technology.
U.S. stock index futures fell on Thursday, pointing to a weaker open a day after stocks rallied, as investors grappled with mixed signals on whether the Federal Reserve would soon cut rates.
The yen rose broadly on Thursday, recovering from the previous day's sharp drop, and high yielding currencies fell as the spotlight swung back to troubled credit markets with investors cautious about risky carry trades.
U.S. stocks rebounded on Wednesday, pushing the Nasdaq to its best day in more than a year, as investors snapped up beaten down technology shares, while the energy sector benefited from a surge in oil prices. Also, a letter from Federal Reserve Chairman Ben Bernanke saying the Fed was prepared to act to stabilize the credit market added to investor hopes for a an interest rate cut.
The yen dropped against the euro and dollar on Wednesday as investors took recovering U.S. stock markets as a cue to slash short-term bets that the Japanese currency would strengthen.
Apple Inc shares rose more than 4.5 percent on Wednesday, fueled by excitement over the pending launch of new iPod digital music players, which could entice current users to buy upgraded models.
Prospects that U.S. equity markets would bounce back on Wednesday after two days of falls lifted European markets, suppressing fears about weakness in the U.S. economy and global financial system.
Japanese stocks hit their lowest close in a week after earlier falling by nearly 3 percent as a strong yen sparked sales of exporters such as Sony Corp after fears about the U.S. economy set off a Wall Street tumble.
U.S. stock indexes tumbled more than 2 percent on Tuesday after Merrill Lynch warned that ailing credit markets will hurt bank profits, while reports showing eroding consumer confidence and falling home prices added to concerns about the economy.
Tokyo shares slipped in thin trade on Tuesday as investors watchful of currency moves sold Toyota Motor Corp and other exporters on a stronger yen, and banks and brokerage firms fell after their U.S. peers slipped the previous session.
Concerns about the U.S. economy prompted investor caution on Tuesday, cutting into what had been a recovery in stocks and boosting the yen.
Shares in Taiwan's Acer Inc fell sharply on Tuesday after investors chafed at the premium the PC maker was paying for loss-making U.S. rival Gateway to gain the spot as the world's No. 3 maker.
The yen rose while high-yielding currencies came under pressure on Tuesday as concerns over the health of the U.S. economy weighed on global equities, prompting investors to trim exposure to risky assets.
Stock index futures fell on Tuesday due to renewed global credit concerns and caution ahead of reports on home prices and consumer confidence. Banking stocks took an early beating after MarketWatch reported that Merrill Lynch had downgraded to neutral from buy investment banks Bear Stearns Cos., Lehman Brothers and Citigroup.
U.S. stocks fell on Monday after data showed the number of unsold homes reached its highest level in more than 15 years in July, adding to concerns about the housing market and consumer spending. Bank shares fell on nagging credit worries after Goldman Sachs slashed its earnings forcast on Lehman Brothers, Bear Stearns and Morgan Stanley.
The dollar rose against the euro, but fell against the yen on Monday, as investors attempted to minimize exposure to risky assets amid lingering fears of a global credit crisis.
Shares of Countrywide Financial Corp dropped as much as 7 percent on Monday after analysts slashed earnings estimates for the largest U.S. mortgage lender and a report showed existing home sales fell.
European shares recovered further on Monday, but Wall Street looked set to open lower after news that for the first time since the leveraged buyout boom began the price on a major private equity deal had been lowered.
The Nikkei average inched up 0.3 percent in thin trade on Monday as KDDI Corp extended gains on profit prospects and auto stocks such as Honda Motor advanced on a softer yen.
An end to Wall Street's streak of rising profits in the third quarter is built into investor expectations, but the top brokerages' results will still face scrutiny next month to see just how they value assets bloodied by the summer market meltdown.
U.S. stocks rose on Friday, sending the broader market to its best week in five months, as surprisingly strong economic data eased concerns about the economy's health and investors bet equities may be stabilizing after weeks of turmoil.
Three Asian banks' heavy exposure to the limping U.S. home loan sector reinforced global credit wobbles on Friday but Germany, France and Italy saw no signs of new problems.
U.S. stocks advanced on Friday as a jump in oil prices boosted energy stocks and an unexpected rise in July new home sales calmed worries about the economy.
