Global markets wobble as credit fears persist

0 Comments | AFP, August, 2007

NEW YORK (AFP) — Wobbles returned to global stock markets Thursday as fears of a credit squeeze resurfaced following the US Federal Reserve's move to increase its liquidity injection to markets.

The Dow Jones Industrial Average gave back early gains and finished essentially flat, with a loss of a fractional 0.25 point at 13,235.88.

The Nasdaq composite dropped 11.10 points (0.43 percent) to 2,541.70 and the Standard Poor's 500 broad-market index shed 1.57 points (0.11 percent) to close at 1,462.50.

A day after hefty gains in most global markets, US stocks opened strong on news that Bank of America had agreed to invest two billion dollars in troubled US mortgage giant Countrywide Financial Corporation.

"The news prompted one analyst to upgrade...