Fed, subprime jitters on tap

(Reuters) - Stocks closed out their worst week in more than three months on fears that trouble at two Bear Stearns hedge funds may signal bigger problems ahead for credit markets.




Whether investors worry through the weekend and remain in a selling mood on Monday remains to be seen after the main stock indexes all fell by more than 1 percent Friday.


Read more at Reuters.com Business News

S&P 500 Posts Biggest Weekly Slide Since March Amid Mortgage-Bond Concerns

(Bloomberg) -- U.S. stocks dropped and the
Standard and Poor's 500 Index posted its biggest weekly
slide since early March on concern that banks will be
saddled with losses on mortgage bonds.

Bear Stearns Cos., Lehman Brothers Holdings Inc. and
Goldman Sachs Group Inc. led financial shares lower after
the near collapse of a Bear Stearns hedge fund spurred
speculation that investors will have to write down the
value of securities containing subprime mortgages.
Homebuilders in S&P indexes plunged for a fourth straight
week after a gauge of builder confidence fell to a 16-year
low and home starts declined.


Read more at Bloomberg Stocks News

Swiss franc surges but carry trades hit yen

(Reuters) - The Swiss franc surged on Friday on renewed speculation the Swiss National Bank will push official interest rates higher, sparking some concern that central banks may be trying to disrupt yield-seeking carry trades.

But investors hungry for higher returns continued to punish the low-yielding yen, sending it to a four-and-a-half-year low against the dollar and a record trough against the euro.


Read more at Reuters Africa

Rand Posts Second Weekly Gain as Investors Hunt for Higher-Yielding Assets

(Bloomberg) -- South Africa's rand advanced for a
second week against the dollar as investors continued to seek
higher-yielding assets in emerging markets.

The rand rallied as the prospect of rising interest rates in
South Africa encouraged investors to use the so-called carry
trade, funding purchases of higher-yielding assets by borrowing
in low-yield currencies such as Japan's yen. The New Zealand
dollar, another high-yielding currency, touched a 22-year high
versus the U.S. currency yesterday.


Read more at Bloomberg Currencies News