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| Version 1 | Version 2 |
|---|---|
| HBOS leads UK bank shares rebound | HBOS leads UK bank shares rebound |
| (about 1 hour later) | |
| HBOS shares have gained as much as 17% after it emerged that management bought £6m worth of shares in the bank. | HBOS shares have gained as much as 17% after it emerged that management bought £6m worth of shares in the bank. |
| The rise was the biggest one-day gain since the UK's biggest mortgage lender listed in 2001 as traders saw the move as a vote of confidence in the bank. | The rise was the biggest one-day gain since the UK's biggest mortgage lender listed in 2001 as traders saw the move as a vote of confidence in the bank. |
| Last week, its shares plunged by a similar amount after "malicious rumours" it was in financial trouble. | Last week, its shares plunged by a similar amount after "malicious rumours" it was in financial trouble. |
| Other UK banks, including Barclays, also rose, lifted by the improved offer for troubled US bank Bear Stearns. | Other UK banks, including Barclays, also rose, lifted by the improved offer for troubled US bank Bear Stearns. |
| Royal Bank of Scotland closed up 9.3%, Barclays rose 7%,and Lloyds TSB gained 6.3%. | |
| After its early peak, HBOS ended up 15% at 544.50 pence. | |
| On Tuesday, stock markets in the UK began their first day of trading after the four-day Easter break, while US stock markets were open on Monday. | On Tuesday, stock markets in the UK began their first day of trading after the four-day Easter break, while US stock markets were open on Monday. |
| "Today is all about Bear Stearns", said Martin Slaney at GFT Global Markets. | |
| On Monday, JP Morgan Chase raised its offer for Bear Stearns to $10 (£5) a share from $2 a share in the hope that the improved terms would satisfy shareholders angry at the lower offer. | On Monday, JP Morgan Chase raised its offer for Bear Stearns to $10 (£5) a share from $2 a share in the hope that the improved terms would satisfy shareholders angry at the lower offer. |
| Fragile sentiment | Fragile sentiment |
| The Federal Reserve engineered rescue of one of Wall Street's biggest banks came after it ran into trouble because of its sub-prime US mortgage debt and other banks refused to lend to it. | The Federal Reserve engineered rescue of one of Wall Street's biggest banks came after it ran into trouble because of its sub-prime US mortgage debt and other banks refused to lend to it. |
| This caused panic in stock markets worldwide as investors considered which other banks may be next to fall. | This caused panic in stock markets worldwide as investors considered which other banks may be next to fall. |
| Last Wednesday, shares in HBOS, which owns the Halifax and Bank of Scotland, dived as the UK stock market opened for trading. | Last Wednesday, shares in HBOS, which owns the Halifax and Bank of Scotland, dived as the UK stock market opened for trading. |
| Shares fell as low as 17% at one point amid speculation that it had approached the Bank of England for emergency funds. | Shares fell as low as 17% at one point amid speculation that it had approached the Bank of England for emergency funds. |
| HBOS denied the rumours, calling them ill-founded and malicious. | HBOS denied the rumours, calling them ill-founded and malicious. |
| The UK's financial watchdog, the FSA, is investigating whether the rumours had been deliberately spread to undermine the value of bank shares. | The UK's financial watchdog, the FSA, is investigating whether the rumours had been deliberately spread to undermine the value of bank shares. |
| The ebullient mood in the financial sector helped to boost the UK benchmark FTSE 100 stock index. | The ebullient mood in the financial sector helped to boost the UK benchmark FTSE 100 stock index. |
| The FTSE 100 ended up 193.9 points, or 3.5%, at 5,689.1. |