Two major Chinese banks that own £4bn (€4.9bn) in Fannie Mae and Freddie Mac securities welcomed Washington’s bailout of the troubled mortgage lenders but declined to say today whether they expect to lose money.

Wall Street scored a moderate gain after a volatile session today that saw the major indexes ratchet up and down on the see-sawing price of oil and mixed feelings about the financial sector.

Stocks lost more ground in extremely volatile trading today, as investors recoiled at a cautious economic outlook from a Federal Reserve official and the possibility of more financial troubles of Fannie Mae and Freddie Mac.