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| Version 2 | Version 3 |
|---|---|
| European and Asian stocks climb | European and Asian stocks climb |
| (10 minutes later) | |
| European and Asian share indexes rose after the world's biggest central banks promised to inject billions of dollars of cash into global financial markets. | European and Asian share indexes rose after the world's biggest central banks promised to inject billions of dollars of cash into global financial markets. |
| London's FTSE 100 index was 1.1% higher, France's Cac 40 added 1.4% and Germany's Dax rose 1.1%. Earlier, Japan's Nikkei closed a 1.6% higher. | London's FTSE 100 index was 1.1% higher, France's Cac 40 added 1.4% and Germany's Dax rose 1.1%. Earlier, Japan's Nikkei closed a 1.6% higher. |
| News of co-ordinated plan by the banks gave US stock indexes their biggest one-day gain in five years on Tuesday. | News of co-ordinated plan by the banks gave US stock indexes their biggest one-day gain in five years on Tuesday. |
| The move aims to ease the global credit freeze which threatens economic growth. | The move aims to ease the global credit freeze which threatens economic growth. |
| Tight times | |
| Banks have been reticent to lend to each other and consumers after suffering billions of dollars of losses on investments linked to the weakening US housing market. | Banks have been reticent to lend to each other and consumers after suffering billions of dollars of losses on investments linked to the weakening US housing market. |
| The central banks, which include the Bank of England and the US Federal Reserve, will pump more than $200bn into the banking system in an attempt to stimulate lending. | The central banks, which include the Bank of England and the US Federal Reserve, will pump more than $200bn into the banking system in an attempt to stimulate lending. |
| Banks, which have been hard hit by the credit crisis, saw their shares rise in Europe on Wednesday. | Banks, which have been hard hit by the credit crisis, saw their shares rise in Europe on Wednesday. |
| Societe Generale added 3.2% and BNP Paribas climbed 2.2%. UBS rose 3.4% and Credit Suisse added 3.8%. Royal Bank of Scotland was also higher, adding 3.1% | Societe Generale added 3.2% and BNP Paribas climbed 2.2%. UBS rose 3.4% and Credit Suisse added 3.8%. Royal Bank of Scotland was also higher, adding 3.1% |
| Shares in Australia, Singapore and India earlier climbed more than 2%. South Korea and Hong Kong were up by more than 1%. | Shares in Australia, Singapore and India earlier climbed more than 2%. South Korea and Hong Kong were up by more than 1%. |
| Not enough? | |
| However, some analysts questioned whether the cash injection would help solve the problems that are now gripping financial markets and threatening to slow growth in some of the world's biggest economies. | |
| "Yesterday's move was like a shot in the arm for the market, but it hasn't gotten at the real root of the illness," said Norihito Fujito, a strategist at Mitsubishi UFJ Securities. | |
| The promise of extra cash on Tuesday was aimed at making it easier for businesses and consumers to borrow money by giving banks greater access to cheaper funds. | |
| Edmund Shing, a strategist at BNP Paribas said: "We have to see the real proof of the pudding in the eating". | |
| Mr Shing said that if interbank lending rates - the rate at which they lend to each other - did not fall then "the central banks will have failed" and it was unlikely that credit conditions would improve. |