This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6967575.stm

The article has changed 14 times. There is an RSS feed of changes available.

Version 11 Version 12
Markets gain on US shares rebound Markets gain on US shares rebound
(about 1 hour later)
US shares have rebounded from Tuesday's heavy falls, with the Dow Jones index gaining 1.3% as investors looked to pick up bargains.US shares have rebounded from Tuesday's heavy falls, with the Dow Jones index gaining 1.3% as investors looked to pick up bargains.
There are increased hopes the Federal Reserve will cut rates, analysts said.There are increased hopes the Federal Reserve will cut rates, analysts said.
The news dragged European shares higher after a day of mixed trading as US housing and credit woes continued to cast a shadow over stock markets.The news dragged European shares higher after a day of mixed trading as US housing and credit woes continued to cast a shadow over stock markets.
The UK's FTSE 100 closed 0.5% ahead at 6,132.2 while Germany's Dax was 0.1% up after trailing for most of the day.The UK's FTSE 100 closed 0.5% ahead at 6,132.2 while Germany's Dax was 0.1% up after trailing for most of the day.
Earlier on Tuesday, Japan's main Nikkei index closed down 275 points, or 1.7%, at 16,013.Earlier on Tuesday, Japan's main Nikkei index closed down 275 points, or 1.7%, at 16,013.
Rate cut hopeRate cut hope
The Dow Jones was up 162.6 points at 13,204.2 by mid-afternoon on Wednesday, having closed 280 points, or 2.1% down, on Tuesday.The Dow Jones was up 162.6 points at 13,204.2 by mid-afternoon on Wednesday, having closed 280 points, or 2.1% down, on Tuesday.
Meanwhile the Nasdaq added 1.5% to 2,539.03.Meanwhile the Nasdaq added 1.5% to 2,539.03.
Analysts said that investors hoped the volatility on global markets would be eased if, as many expect, the US Federal Reserve cuts interest rates next month.Analysts said that investors hoped the volatility on global markets would be eased if, as many expect, the US Federal Reserve cuts interest rates next month.
"The market is a little oversold, and bargain hunters are coming into the equation," said Weeden & Co strategist Steve Goldman."The market is a little oversold, and bargain hunters are coming into the equation," said Weeden & Co strategist Steve Goldman.
We need more momentum...in order to start reversing some of yesterday's awful losses Peter DixonAnalyst, Commerzbank Market jitters and your walletWe need more momentum...in order to start reversing some of yesterday's awful losses Peter DixonAnalyst, Commerzbank Market jitters and your wallet
"The market is also getting closer to when the Fed will lower rates.""The market is also getting closer to when the Fed will lower rates."
Tuesday's fall came after another warning about the impact of the problems in global credit markets - centred on the crisis in the US sub-prime mortgage sector - from investment bank Merrill Lynch.Tuesday's fall came after another warning about the impact of the problems in global credit markets - centred on the crisis in the US sub-prime mortgage sector - from investment bank Merrill Lynch.
The bank downgraded its opinion of stocks in three firms exposed to the sub-prime sector - Bear Stearns, Lehman Brothers and Citigroup.The bank downgraded its opinion of stocks in three firms exposed to the sub-prime sector - Bear Stearns, Lehman Brothers and Citigroup.
"We need more momentum I think in order to start reversing some of yesterday's awful losses," said Commerzbank economist Peter Dixon."We need more momentum I think in order to start reversing some of yesterday's awful losses," said Commerzbank economist Peter Dixon.
The sub-prime mortgage sector gives higher risk loans to people with poor credit histories.The sub-prime mortgage sector gives higher risk loans to people with poor credit histories.
Sub-prime default levels have risen to record highs in the US over the past year in the face of higher mortgage rates.Sub-prime default levels have risen to record highs in the US over the past year in the face of higher mortgage rates.
This has raised fears that this could hamper credit availability in the broader market, not just in America, but around the world.This has raised fears that this could hamper credit availability in the broader market, not just in America, but around the world.
On Wednesday, Australian-run investment fund, the Basis Yield Alpha Fund, became the latest victim of the housing slump.
It filed for bankruptcy protection in the US after suffering heavy losses.