GLOBAL MARKETS

U.S. stocks dipped on Thursday as investors worried about the economic outlook after the head of the biggest U.S. mortgage company said the housing downturn could create a recession.

Stocks declined on Thursday after the chief executive of Countrywide Financial Corp said the housing market was certainly not getting better and could push the economy into a recession. The comments offset optimism about a $2 billion injection into Countrywide, the biggest U.S. mortgage lender.

Countrywide Financial Corp was expected to lead financial shares higher on Thursday after receiving a $2 billion injection from Bank of America Corp, easing fears the largest U.S. mortgage lender could go bankrupt and boosting optimism the sector will weather a credit shortage.

China's main stock index climbed for the first time above the 5,000-point level on Thursday, passing another milestone in a spectacular bull run that has more than quadrupled the index since the start of last year.

Investors banking on a swift cut in the U.S. benchmark interest rate to ease market turmoil may be disappointed: Policy-makers may be reluctant to act before a week jammed with economic data in early September.

European shares rose in early trade on Thursday, tracking sharp gains made by U.S. and Asian stocks overnight as equity markets continued to recover from a recent correction sparked by fears over a credit crunch.

The yen fell broadly and higher-yielding currencies strengthened on Thursday as calm returned to troubled credit markets and rising equities signaled increased investor appetite for risk.

Investors bought riskier assets on Thursday, lifting world stocks, emerging market debt and higher-yielding currencies as hopes increased that the worst of the recent credit market storm has blown over. Stock markets from Shanghai to London posted solid gains, with the Chinese bourse hitting another all-time high.

Shares of baseball card company Topps Co Inc fell 7 percent on Wednesday after hostile suitor Upper Deck Co. dropped its $417 million bid, leaving Topps with a $378 million offer from a buyout group and a firm led by former Walt Disney Co chief Michael Eisner.

U.S. stocks rose on Wednesday as takeover activity resurfaced and credit markets stabilized, luring investors back into riskier assets such as equities.

Shares rose on Wednesday as hopes grew of a U.S. interest rate cut to calm turbulent markets but an increase in risk appetite sent bonds lower and put the yen under pressure.

The yen fell and high-yielding currencies rose on Wednesday as growing expectations of a U.S. rate cut to ease tight liquidity conditions instilled a sense of calm and prompted investors to reenter risky carry trades.

Stocks gained on Wednesday, boosted by optimism about renewed deal activity and ongoing speculation the Federal Reserve might cut its benchmark interest rate to calm turbulent financial markets.

Stocks were heading for a higher open on Wednesday on optimism about renewed deal activity and speculation the Federal Reserve might cut its benchmark interest rate to calm turbulent markets.

Most Asian stocks tiptoed higher in early trade on Wednesday, lifted by hopes that the U.S. might cut interest rates to calm turbulent markets, but the stronger yen weighed on Japan's exporters, such as Toyota Motor.

The S&P 500 and Nasdaq rose on Tuesday as a signal that the Federal Reserve might cut its benchmark interest rate soon muted persistent concerns about withering credit markets.

Federal Reserve Chairman Ben Bernanke signaled a willingness to consider an early cut in the benchmark interest rate to quell market unrest, a key U.S. lawmaker said on Tuesday after meeting with the Fed chief, sending Wall Street higher.

Decades pass but the story remains the same -- financial markets lurch from boom to bust, central banks rush in to avert disaster and their rescue operation sets the scene for yet another boom-bust sequel.

Stock markets may have fallen sharply from their recent highs over the past weeks, but there is a wall of money sitting out there that could turn it all into a far greater rout.

U.S. stocks rose to session highs on Tuesday after a U.S. lawmaker said the Federal Reserve chairman pledged to use all available tools to calm financial markets, increasing speculation about a rate cut. U.S. crude oil futures fell below $70 a barrel, pushing up airline stocks like the parent of American Airlines, AMR Corp., up nearly 7 percent at $23.73. It was the first time oil has fallen below $70 since July 2.

Dell Inc. shares shed more than 2 percent on Tuesday amid concerns that industry-wide constraints on some display screen components and production issues with the paint on some of its notebook PC lines could delay the delivery of new machines.

Shares of Take-Two Interactive Inc. rose about 10 percent on Tuesday after the interactive entertainment company announced the North American release of its highly anticipated science-fiction shooter game BioShock.

The yen gained broadly in volatile trading on Tuesday as persistent jitters about global credit conditions prodded investors to sell more risky assets funded by borrowing at low rates in the Japanese currency.

Shares of KKR Financial Holdings LLC (NYSE: KFN), an affiliate of private equity giant Kohlberg Kravis Roberts & Co., rose over 8 percent on Monday after it announced a plan to raise $500 million in cash from investors, including existing shareholders.

As the stock exchanges prepare to release their monthly short interest reports this week, Wall Street is waiting with more anticipation than usual.

U.S. blue-chip stocks rose on Monday after reversing direction in the last hour of trade as the flight to safety into short-dated Treasury bills flagged, suggesting concerns over the stability of credit markets were receding.

Stocks fell on Monday, led by losses in financial companies, as worries about spillover from the subprime mortgage market lingered despite the Federal Reserve's surprise discount rate cut on Friday.

Calm returned slowly to financial markets on Monday, but there were lingering signs that credit problems persist despite policy-makers' insistence that the global economic growth would remain solid.

KKR Financial Holdings LLC, a specialty finance firm, on Monday said it planned to sell about $500 million in stock, but could take a $200 million charge from mortgage bond-related losses and be forced to change its tax status.