Friday's news of a buckling U.S. job market sent stock investors running for the exits, and this week promises to be no less stressful as investors grapple with the increasing possibility of an economic recession.
A drop in July payrolls may lead to aggressive interest-rate cutting.
Bush administration officials on Friday sought to ease fears the U.S. was tipping into recession after a government report showed the economy shed jobs for the first time in four years last month.
Treasury Secretary Henry Paulson on Friday said he was not totally surprised about the decline in jobs in August given housing troubles and less government hiring, but he still sees the U.S. economy as healthy.
Companies showed signs of shrugging off the caution that has enveloped the world economy since a credit crisis broke, as investors looked on Tuesday to U.S. data to gauge the likelihood of a Federal Reserve rate cut.
U.S. stock index futures indicated a weaker open on Wall Street on Tuesday before a key economic report forecast to show a dip in manufacturing activity last month.
Britain's leading shares rose on Monday in thin volumes as comments by Barclays eased concerns over its financial health, helping to underpin financial stocks.
World stocks made small gains and currency markets traded in a narrow range on Monday as many investors avoided taking strong positions during the U.S. Labor Day holiday with its accompanying lack of key economic news.
China said on Monday none of its massive foreign exchange stockpile was invested in the teetering U.S. subprime mortgage sector, while a top EU official predicted the crisis would not choke off economic recovery.
The dollar steadied versus the euro and yen on Monday at the start of a busy week for U.S. data which should shed light on the extent to which the credit markets turmoil is taking a toll on growth.
Asian stock markets took a breather on Monday with Tokyo's Nikkei slipping on fresh concerns about the economy, and the yen traded in a small range in a session likely to be dulled by the U.S. Labor Day holiday.
Stock markets ended one of the most volatile months in years on an impressive note, but this coming week still won't be any easier for investors as the employment report and housing turmoil remain high on radar screens.
U.S. stocks surged on Friday as President Bush and Federal Reserve Chairman Ben Bernanke reassured investors they would do what was needed to shelter the economy from market turmoil. Banks and brokers, which have borne the brunt of the recent credit crisis, rose in thin trading before a long holiday weekend.
Gold rose on Friday, aided by firm stocks and a strike at a gold mine, as speeches by U.S. President George W. Bush and Federal Reserve Chairman Ben Bernanke calmed financial markets ahead of the three-day U.S. Labor Day holiday weekend.
The Federal Reserve on Friday reassured investors it would take any steps needed to shelter the U.S. economy from a global credit squeeze, while President George W. Bush promised to help struggling homeowners refinance their mortgages. Chairman Ben Bernanke also said the central bank would not bail out investors who had made mistakes.
President George W. Bush on Friday tried to calm financial market turmoil from the credit crisis by announcing proposals intended to prevent homeowners from defaulting on risky mortgages. In trying to soothe those worries, Bush said the U.S. economy was healthy enough to weather the credit crisis and that the subprime market problems represented only a modest part of the economy.
Prepared text of Federal Reserve Chairman Ben Bernanke's speech at Kansas City's Economic Symposium, Jackson Hole, Wyo.
The Federal Reserve is set to act as needed to limit impacts of financial turmoil on the economy but will not bail out investors who made poor decisions, Fed Chairman Ben Bernanke said on Friday. He also acknowledged that disruptions due to a slumping housing market and delinquencies among subprime loans could have damaging effects on the broader economy.
Core U.S. consumer prices rose by a less-than-expected 0.1 percent in July, showing stable prices that held the year-on-year rate of nonfood, nonenergy inflation to 1.9 percent for the second month in a row, the Commerce Department said on Friday.
U.S. stock index futures pointed to a firmer opening on Friday, with all eyes on speeches by Federal Reserve Chairman Ben Bernanke and President George W. Bush, both expected by analysts to touch on the U.S. subprime crisis.
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. President George W. Bush will outline reforms on Friday to help struggling subprime mortgage borrowers and his central bank chief will deliver a speech which will be pored over for hints of a looming rate cut.
