Don't miss

Replay


LATEST SHOWS

FOCUS

Canada: Religious sponsorship of refugees creates controversy

Read more

BUSINESS DAILY

Verizon set to buy Yahoo's internet business

Read more

IN THE PAPERS

As Democrats gather, Russian subplot sparks intrigue

Read more

IN THE PAPERS

Bernard Cazeneuve, the political punching bag

Read more

THE INTERVIEW

Erdogan to rid Turkish institutions of ‘separatist cancer’ after coup attempt

Read more

ENCORE!

The best of summer music festivals in France

Read more

FRANCE IN FOCUS

Going for gold: French athletes train for Rio Olympics

Read more

#TECH 24

Digital beauty

Read more

FOCUS

Women doctors in Pakistan challenge the status quo

Read more

European stocks jump back up after US intervention

Latest update : 2008-09-20

Driven by massive gains in banks after the US government announced a plan to fight the global credit crunch, European stocks closed at exceptional highs on Friday. In London, Paris and Frankfurt stocks recorded rises from 5 to 9%.


Also read: US President George Bush says that the government "must act now".

 

European stocks soared Friday, driven by massive gains in the banks after the US government announced a plan to cordon off the debt and toxic investments at the heart of the global credit crunch.
  
In London, the FTSE 100 index of leading companies rose 8.84 percent to close at 5,311.30 points.
  
In Paris, the CAC 40 jumped 9.27 percent, its largest one-day gain, to 4,324.87 points, and in Frankfurt, the DAX was up 5.56 percent at 6,189.53 points.
  
All three markets easily regained key support levels that had been breached earlier in the week in some of the most tumultuous trading on record.
  
Dealers said the banks -- many posting gains of 30 and 40 percent -- were in focus as Washington prepared a plan to tackle the mountain of bad debt that has weighed them down in the past year and sparked a global credit crunch.
  
Meanwhile, the US Securities and Exchange Commission banned the short selling of shares in financial companies so as to remove some of the speculative pressures on them.
  
That followed similar action in Britain, Ireland and Switzerland.
  
Short-selling is when an investor borrows a stock or investment instrument and sells it on the belief it will fall in price, allowing them to buy it back later more cheaply and so make a profit.
  
On Wall Street, stocks charged ahead, opening with a gain of 3.58 percent, having added 3.5 percent Thursday as news of the US government plan came through.
  
Officials from the US Treasury, Federal Reserve and Congress met to discuss a "comprehensive approach" to rid financial institutions of bad assets at the root of the current credit crisis, Treasury Secretary Henry Paulson said.
  
"Overnight, the game changed," said John Wilson at Morgan Keegan, adding: "We hope this is the beginning of something major.
  
Paulson said Friday the plan would involve hundreds of billions of dollars.

Date created : 2008-09-19

COMMENT(S)