Stock markets have shown signs of recovery after a global sell-off on Wednesday was sparked by concerns about the US economy and mortgage industry.
Stock markets have shown signs of recovery after a global sell-off on Wednesday was sparked by concerns about the US economy and mortgage industry.
Wall Street opened slightly higher, extending Wednesday's strong gains that lifted markets across Asia and Europe. In London, the FTSE 100 was 115.4 points, or 1.9%, higher at 6,116.1 after losing 2.5% the previous day.
Wall Street saw a second consecutive day of modest gains while markets rallied across Asia and Europe.
France's Cac 40 and Germany's Dax 30 - which saw heavy losses on Wednesday - were up 1.5% and 2.1% respectively.
The Dow Jones rose 26.3 points to close at 12,159.7 while the FTSE 100 gained 132.5 points to end at 6,133.2.
France's Cac 40 and Germany's Dax 30, which fell sharply on Wednesday, rose 93.63 and 137.7 points respectively.
Japan's benchmark Nikkei index, which lost almost 3% on Wednesday, rose 1.1% to end at 16,860.39.
Japan's benchmark Nikkei index, which lost almost 3% on Wednesday, rose 1.1% to end at 16,860.39.
China's main stock index - the Shanghai Composite - closed up 1.56%, while Hong Kong's Hang Seng index increased 0.7%.
China's main stock index - the Shanghai Composite - closed up 1.56%, while Hong Kong's Hang Seng index increased 0.7%.
Market turmoil
Market turmoil
Until we get a resolution to the issues that we are seeing in the US sub-prime market, we are likely to see a lot of volatility Simon Doyle, Schroder Investment Management
Analysts pointed to comments from former Federal Reserve chairman Alan Greenspan about the resilience of US consumer spending as having given support to the market.
"The Nikkei has recouped just half the losses it sustained yesterday," said Yasuo Yabe, director of sales at Tokyo's Meiwa Securities.
But they said that the atmosphere was still jittery due to uncertainty about the strength of the US housing market and what impact this would have on the wider economy.
"Investors are pondering whether sub-prime mortgage problems will have a broader economic impact or not."
Figures published on Thursday also showed an unexpected rise in US producer prices, resurrecting concerns about inflationary pressures.
Wednesday's round of selling was prompted by concerns over the US sub-prime mortgage market.
Some days the pessimists win, some days the optimists win, Ed Peters, PanAgora Asset Management.
Sub-prime lenders, who target consumers with poor credit histories, have been hit by an increase in defaults and bad loans.
Wednesday's round of selling was prompted by concerns over the US sub-prime mortgage market, which has been hit by an increase in defaults and bad loans.
Figures have shown that late mortgage payments and home repossessions in the US are at their highest level since records began.
Figures have shown that late mortgage payments and home repossessions in the US are at their highest level since records began.
Overnight, the US Dow Jones index closed 57.44 points, or 0.48%, ahead at 12,133.40. The technology-laden Nasdaq rose 0.9%, while the broader Standard & Poor's 500 index closed 0.7% higher.
The stock market turmoil which has swept across global exchanges over the past few weeks may not have fully run its course, many believe.
However, analysts warned that the stock market turmoil which has swept across global exchanges over the past few weeks may not have fully run its course.
"Some days the pessimists win, some days the optimists win," said Ed Peters, chief investment officer at PanAgora Asset Management.
"Until we get a resolution to the issues that we are seeing in the US sub-prime market, and see what impact it is going to have on the global economy, we are likely to see a lot of volatility," said Simon Doyle, head of strategy at Schroder Investment Management in Australia.
"The market goes back and forth."
Have you been affected by the uncertainty in the mortgage industry? Has your own mortgage been affected? Send us your comments and experiences using the form below.
Have you been affected by the uncertainty in the mortgage industry? Has your own mortgage been affected? Send us your comments and experiences using the form below.
