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| US bank news lifts world shares | US bank news lifts world shares |
| (20 minutes later) | |
| European and Asian shares have risen strongly in Tuesday trading, boosted by JP Morgan Chase raising its takeover offer for rival US bank Bear Stearns. | European and Asian shares have risen strongly in Tuesday trading, boosted by JP Morgan Chase raising its takeover offer for rival US bank Bear Stearns. |
| Echoing the overnight gains on Wall Street, stocks were further lifted by a surprise rise in US home sales. | Echoing the overnight gains on Wall Street, stocks were further lifted by a surprise rise in US home sales. |
| The UK's FTSE 100 index was up 3.25%, or 178 points, to 5,674 in early trade, while Japan's Nikkei earlier added 2%. | The UK's FTSE 100 index was up 3.25%, or 178 points, to 5,674 in early trade, while Japan's Nikkei earlier added 2%. |
| JP Morgan's higher offer for troubled Bear Stearns has eased fears about the extent of woes in the banking sector. | JP Morgan's higher offer for troubled Bear Stearns has eased fears about the extent of woes in the banking sector. |
| 'Ready for a rebound' | |
| France's Cac and Germany's Dax were both up 3% in early trading. | France's Cac and Germany's Dax were both up 3% in early trading. |
| We have gone down low enough and the market is ready for a rebound Francis Lun, Fulbright Securities | We have gone down low enough and the market is ready for a rebound Francis Lun, Fulbright Securities |
| Hong Kong's Hang Seng index earlier closed up 6.4%, while shares in Australia added 3.3%. | |
| Investor attention now turns to the latest official US consumer confidence data due out later. | Investor attention now turns to the latest official US consumer confidence data due out later. |
| Analysts were divided on whether Tuesday's gains were likely to continue. | |
| "I think this is the beginning of a rally," said Francis Lun, a general manager at Fulbright Securities in Hong Kong. | "I think this is the beginning of a rally," said Francis Lun, a general manager at Fulbright Securities in Hong Kong. |
| "We have gone down low enough and the market is ready for a rebound. Banks will lead the rally." | "We have gone down low enough and the market is ready for a rebound. Banks will lead the rally." |
| But Societe Generale's Arthur van Slooten said the gains may only "be a temporary relief". | |
| "To be convinced that this is the floor, we need more indications that the credit market is stabilising," he said. | |
| "Until that happens, equities will remain under pressure, so this could be a small rally in a bear market." |