A tough political fight looms over the release of the second $350bn in US bail-out funds, with a strong possibility that the House of Representatives, and perhaps the Senate as well, could vote to disapprove it.

Analysts said the funds would almost certainly end up being released, because the president could veto any disapproval legislation and supporters of the second tranche would be able to sustain that veto. But the political manoeuvring – which carries echoes of the September debacle when the House initially voted down the bail-out bill – may still prove stressful for markets.