Major central banks swept in to calm credit markets spooked by mounting losses on Thursday, with the European Central Bank injecting record amounts of cash to prevent the financial system from seizing up.
Stocks fell sharply on Thursday as another shoe dropped in the U.S. subprime mortgage sector meltdown, causing investors to flee riskier assets for the relative safety of government bonds. Stocks added to their declines after the Wall Street Journal reported a second Goldman Sachs Group Inc. hedge fund was suffering losses and was selling its positions.
The low-yielding yen jumped against the dollar and euro on Thursday as investors trimmed exposure to carry trades after BNP Paribas said three of its funds were hit by problems in the U.S. subprime mortgage sector.
Stocks rose for a third session on Wednesday, a day after the Federal Reserve reassured investors about the economy and technology bellwether Cisco Systems Inc. raised its revenue outlook.
The yen fell across the board on Wednesday after a Federal Reserve statement cooled expectations for a near-term U.S. interest rate cut and boosted stocks and other riskier assets.
The dollar crept lower against the yen on Tuesday as investors waited for a Federal Reserve statement that will be scrutinized for any signs of a shift in the central bank's vigilant stance on inflation.
Stocks rose on Tuesday after the Federal Reserve said it still saw moderate economic growth ahead even though credit conditions have tightened for some consumers and businesses.
Wynn Resorts Ltd posted a profit on Monday that topped Wall Street targets on strong results out of Las Vegas and China's gambling haven of Macau, and the company's shares jumped more than 10 percent in extended trading.
Asian stock markets steadied on Tuesday and the dollar held on to gains versus the yen following a rally on Wall Street, but lingering concerns about a global credit squeeze kept many investors sidelined.
Stocks rallied on Monday as investors snapped up beaten-down shares of financial companies after a sharp drop at the end of last week on mounting concerns about the stability of the credit markets.
Shares of subprime lenders and companies with a stake in the risky end of the real estate business plunged in midday trading on Monday as analysts downgraded them and negative news continued to worry the market.
The yen fell broadly on Monday as the U.S. stock market extended gains and benchmark Treasury yields rose.
Shares of Bear Stearns Cos. slid 7 percent late Monday morning after the investment bank's co-president quit amid growing concerns about the company's mortgage investments.
Fears of a global credit squeeze and worries about U.S. economic strength swept across financial markets on Monday, shaking up stocks, knocking the dollar to a 15-year low and straining popular currency trades.
Samsung Electronics Co. Ltd. shares opened lower on Monday after a power outage at a major plant near Seoul on Friday affected some of its chip production lines, but the stock quickly pared back losses.
More signs of weakness in the mortgage market, another surge in oil prices and a Federal Reserve rate decision could create more turbulence for Wall Street this week.
Japan's Nikkei average fell 0.87 percent on Monday as exporters such as Canon Inc. lost ground on a tumble on Wall Street and a stronger yen, while bank shares slid again on subprime lending worries and much weaker first-quarter earnings than expected.
Asian stock markets tumbled on Monday with financial shares such as Macquarie Bank hit by global credit jitters, while fresh concerns about the health of the U.S. economy knocked the dollar lower.
Stocks slid sharply on Friday after Bear Stearns said credit markets were in their worst shape in two decades, while jobs data aroused further concerns about weakness in the economy.
The dollar steadied against other major currencies on Friday, hugging tight ranges as investors shifted their focus to upcoming U.S. employment data from the credit and stock market volatility of recent weeks.
World stocks were steady on Friday, off this week's 3-1/2 month low, as robust corporate earnings highlighted the underlying strength of the global economy, calming concerns about a global credit squeeze.
Stocks rallied late in the session on Thursday for the second day as enthusiasm about strong profits offset lingering credit concerns, although a modest flight-to-quality bid gave bond prices a slight lift.
U.S. securities market regulators are pursuing a suspected insider trading ring that appears to have been operating in many stock and options markets over several months. Authorities said tracking the suspects has been a team effort among the major exchanges and federal regulators.
World stocks bounced off this week's 3-1/2 month low on Thursday and credit markets stabilized as upbeat corporate earnings tempered worries about a global credit crunch which had prompted a sell-off of almost a fortnight.
The euro briefly edged up against the dollar on Thursday after the European Central Bank president said 'strong vigilance' was needed to stem inflation risks, signaling a possible September rate hike.
Strong cellphone demand in Asian emerging markets boosted Nokia Oyj's second-quarter sales and profits, sending its shares to their highest level in more than five years.
The Standard & Poor's 500 index slid in a highly erratic session on Wednesday, as concerns about worsening credit conditions persisted and a sharp downturn in the price of oil sent energy companies' shares lower.
The dollar rose against the yen on Wednesday, rebounding from earlier three-month lows in choppy trading, as the U.S. stock market steadied after its recent heavy losses.
Stocks fell and currency markets churned on worries about worsening credit markets and a move away from risky investments.
The recent slide in European stock markets has not signaled the turning point in the four-year bull run, chart analysts say, but stocks could struggle to recover those losses in the short term.
