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Europe shares rise after US vote | Europe shares rise after US vote |
(30 minutes later) | |
European stocks have risen in Thursday trading following the US Senate's decision overnight to back the revised American financial rescue plan. | European stocks have risen in Thursday trading following the US Senate's decision overnight to back the revised American financial rescue plan. |
Analysts said European investors were hopeful the US House of Representatives will now back the revised scheme. | |
The UK's FTSE 100 index was up 1.3%, in lunchtime trading in London, while Germany's Dax had gained 0.7%. | |
The share gains also came after France confirmed that it will host a summit on the financial crisis on Saturday. | |
European talks | European talks |
UK Prime Minister Gordon Brown is due to attend, together with German Chancellor Angela Merkel, Italian Prime Minister Silvio Berlusconi, and European Central Bank President Jean-Claude Trichet. | UK Prime Minister Gordon Brown is due to attend, together with German Chancellor Angela Merkel, Italian Prime Minister Silvio Berlusconi, and European Central Bank President Jean-Claude Trichet. |
Investors are still concerned about the efficiency of this rescue plan and how it can help the global economy Aric Au, Phillip Securities | |
European leaders have denied speculation that they wanted to establish a unified 300bn euro ($418.4bn; £236bn) banking rescue deal along the same lines as the US plan. | |
The rescue idea was said to be being proposed by France, but Mr Sarkozy insisted that there were no such plans. | The rescue idea was said to be being proposed by France, but Mr Sarkozy insisted that there were no such plans. |
"I deny both the amount and the principle [of such a plan]," he said. | "I deny both the amount and the principle [of such a plan]," he said. |
'Essential' | 'Essential' |
Since the first US$700bn (£380bn) plan was rejected, the White House has made a number of changes to help win over opponents. | |
Senator Harry Reid expects the House of Representatives to approve the bill. | Senator Harry Reid expects the House of Representatives to approve the bill. |
These include raising the government's guarantee on savings from $100,000 to $250,000, tax breaks to help small businesses, expansion of child tax credit, and help for victims of recent hurricanes. | These include raising the government's guarantee on savings from $100,000 to $250,000, tax breaks to help small businesses, expansion of child tax credit, and help for victims of recent hurricanes. |
President George W Bush said that the package was "essential to the financial security of every American". | President George W Bush said that the package was "essential to the financial security of every American". |
However, economists said doubts remained about how effective the package would be. | However, economists said doubts remained about how effective the package would be. |
"Investors are still concerned about the efficiency of this rescue plan and how it can help the global economy," said Aric Au of Phillip Securities in Hong Kong. | "Investors are still concerned about the efficiency of this rescue plan and how it can help the global economy," said Aric Au of Phillip Securities in Hong Kong. |
McCain and Obama | McCain and Obama |
US presidential hopefuls John McCain and Barack Obama, who both returned from the campaign trail for last night's Senate debate, voted in favour of the rescue plan. | US presidential hopefuls John McCain and Barack Obama, who both returned from the campaign trail for last night's Senate debate, voted in favour of the rescue plan. |
Senate majority leader Harry Reid, a Democrat, said he was happy with the result and praised both presidential candidates for voting. | Senate majority leader Harry Reid, a Democrat, said he was happy with the result and praised both presidential candidates for voting. |
"I think it shows that when we work together we can accomplish good things," he said. | "I think it shows that when we work together we can accomplish good things," he said. |
Mitch McConnell, leader of Republican senators, was also in jubilant mood. | Mitch McConnell, leader of Republican senators, was also in jubilant mood. |
"This was a measure that was much needed, to unfreeze the credit markets and get America's economy working again," he said. | "This was a measure that was much needed, to unfreeze the credit markets and get America's economy working again," he said. |