Beginning of the week, analysts warn of a slump more severe, more widespread and may last longer.

It was said that declining home construction in the United States has cut into economic growth. A hefty 1.3% points has been sliced off the annualised growth rate.

But by Friday night Singapore time, European and United States share markets rocketed after the US central bank made a surprise cut in a key interest rate in a bid to calm jittery investors.
 
European bourses reversed their losses and shot up - London went 4% ahead and clawed back all the previous losses - while Wall Street added as much as 320 points within minutes of opening.

The Dow Jones Industrial Average was up 119.09 points, or 0.93% at 12,964.87 on Friday.

Asian bourses are expected to stage a similar rebound when trading resumes on Monday (20 August 2007) and investors are given reasons to smile again as the move made by the US government signals that the sub-prime market issues are only temporary and solutions are in place.

Back home in Singapore, Minister Mentor Lee Kuan Yew said during a National Day dinner that the stock market should recover soon.