NEW YORK (Reuters)
Government steps to shore up the banking system and unfreeze credit markets showed some signs of progress on Thursday, but grim (nemilos, aspru) news from major economies reinforced fears of recession and hammered global markets.
U.S. stocks bucked the global trend to end higher, clawing (claw=ghiara) back some of Wednesday's steep losses despite news of layoffs (to lay off= a renunta la) in the auto-industry, a slowdown in industrial production and more warnings about the state of the economy.
Banks, which are at the heart of the crisis, were in the spotlight (reflector) again.
Switzerland's top two banks, UBS AG and Credit Suisse Group AG (CS), took emergency measures to shore up their finances. In the United States Merrill Lynch and Citigroup reported heavy losses on bad loans (imprumut) and tough-to-sell mortgage securities.
In a sign of easing strains (incordare, surmenaj) in the credit markets, rates (taxa, impozit, rates payer= contribuabil, a evalua, a aprecia, a considera, ocari) that banks charge each other for loans mostly fell in response to radical moves by central banks to provide liquidity, bolster banks and loosen credit lines to institutions needing cash.
However, U.S. financial institutions borrowed record amounts of cash from the Federal Reserve in the latest week, according to Fed data released ( a elibera, a da drumul) on Thursday, indicating that credit conditions in the United States remain constrained.
European Union leaders vowed (promisiune, juramant, a jura) to shield (scut, a apara) their industries from the global crisis and pushed plans for a global summit (intalnire la cel mai inalt nivel) to overhaul the world financial system.
Haul= a trage, a cara
Over=peste; turn the page over, to boil over=a da in foc; to count over; to be over=a se termina; over and over again; all over the world; over and above=pe langa; overhear= a surprinde, averhaul=a revizui, overlook=a trece peste; overrate a supraestima;overreach=a depasi, pacali; oversee=a supraveghea; overtake=a depasi)
Asian, European and emerging market stock markets took another battering on Thursday. Japan's Nikkei fell 11 percent in its worst one-day drop since the stock market crash of October 1987, oil fell more than 6 percent to below $70 a barrel, and European shares lost 5 percent.
But in New York, the allure of heavily battered shares drew (part de la draw= a atrage; draw in= a micsora; draw out= a creste) buyers one day after Wall Street's worst day in more than 20 years. The Dow ended up 4.68 percent and the S&P 500 rose 4.25 percent, buoyed by consumer companies that benefit from lower oil prices. The dollar also rose.
"I think this is bargain hunting ( bargain= targ, afacere; to strike a ~=a ajunge la o intelegere; ~hunter=chilipirgiu; a incheia o afacere) and there are some bargains out there. Some of these stocks are at historic lows (redus, mic, jos)," said Warren Simpson, managing director at Stephens Capital Management in Little Rock, Arkansas.
Wednesday's sharp ( ascutit, ironic, abrupt,abil,diez,fix, exact, dontr-o data) fall had dragged (pacoste, a scoate, a tara) the Dow down about 40 percent from its record closing high of 14,164.53 hit on October 9, 2007. Investors have pulled over $50 billion from stock funds so far in October, depressing prices in equities.
The rally( a regrupa, a-si reveni, a ironiza; miting, congres, concurs) in stocks drove up oil prices in electronic trade following the U.S. settlement (intelegere, stabilire), with crude futures rising more than $3 a barrel.
GRIM NEWS ON MAIN STREET
In the real economy, the news was mostly grim.
Investment bank Merrill Lynch, which is to be acquired by Bank of America, wrote down $5.7 billion of toxic assets and Citigroup reported a quarterly net loss of $2.8 billion.
Gap maker…collocation
Ø unfreeze credit markets
Ø grim news
Ø major economies
Ø global markets
Ø U.S. stocks
Ø global trend
Ø the state of the economy.
Ø to shore up finances
Ø heavy losses on bad loans
Ø fell in response to radical moves
Ø loosen credit lines
Ø financial institutions
Ø remain constrained
Ø the global crisis
Ø world financial system
Ø global summit
Ø emerging market stock markets
Ø stock funds
Ø Investors have pulled over
Ø Investment bank
Ø acquired by Bank