This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7658174.stm

The article has changed 25 times. There is an RSS feed of changes available.

Version 19 Version 20
Shares falling despite rate cuts Wall Street rises after rate cut
(20 minutes later)
Stock markets are down sharply despite the co-ordinated rate cuts in the UK, Europe and the US. Wall Street shares have risen following the co-ordinated interest rate cuts in the UK, Europe and the US.
In New York, the Dow Jones opened down 1.1%, while the FTSE 100 in London had fallen by 3.4%. New York's Dow Jones had opened lower, but recovered to trade up 1.2%.
Elsewhere in Europe, Germany's Dax index was down 5.1% and the Cac 40 in Paris was trading down by 3.5%. European stock markets remained in negative territory, with London's FTSE 100 down 2.2%, France's Cac 40 2.7% lower and Germany's Dax down 4.0%.
The Bank of England, the European Central Bank (ECB) and the US Federal Reserve have all reduced their key rates by half a percentage point.The Bank of England, the European Central Bank (ECB) and the US Federal Reserve have all reduced their key rates by half a percentage point.
London's FTSE 100 index had opened sharply lower. It was briefly positive after the rate cut but then fell again. The Bank of England cut UK rates from 5% to 4.5%, the Federal Reserve reduced US rates from 2% to 1.5%, and the ECB cut eurozone rates from 4.25% to 3.75%
The key now is for the markets to respond to this intervention with reason and a measure of realistic Stephen Gifford, Grant Thornton Financial crisis at-a-glance: 8 OctSouth Asian shares fallHuge sell-off on Arab exchangesThe key now is for the markets to respond to this intervention with reason and a measure of realistic Stephen Gifford, Grant Thornton Financial crisis at-a-glance: 8 OctSouth Asian shares fallHuge sell-off on Arab exchanges
The falls in Europe and Asia had followed a huge sell-off on Wall Street, which saw the Dow Jones index close Tuesday down more than 500 points. The falls on European and Asian stock markets had followed a huge sell-off on Wall Street on Tuesday, which saw the Dow Jones index close down more than 500 points.
Some of the key developments on another day of market turbulence have included:
  • The Bank of England cut UK rates from 5% to 4.5%, the Federal Reserve reduced US rates from 2% to 1.5%, and ECB cut eurozone rates from 4.25% to 3.75%
  • The UK government has announced details of a rescue package that will see it put up to £50bn ($88bn) into banks to strengthen the financial system
  • ING Direct announced it was acquiring more than £3bn of deposits held by British savers with Icelandic-owned banks
  • The British government said all UK savers with accounts in the closed Icelandic internet bank Icesave would get all their money back.
  • Austria became the latest country to fully guarantee savers' deposits
Other key developments on another day of market turbulence have included:
  • The UK government has announced details of a rescue package that will see it put up to £50bn ($88bn) into banks to strengthen the financial system
  • ING Direct announced it was acquiring more than £3bn of deposits held by British savers with Icelandic-owned banks
  • The British government said all UK savers with accounts in the closed Icelandic internet bank Icesave would get all their money back.
  • Austria became the latest country to fully guarantee savers' deposits
'Realistic optimism'
The other central banks that took part in the co-ordinated rate cut were those in Canada, Sweden, and Switzerland. China also cut its interest rates, the second time it has cut its key rate in less than a month.
"The key now is for the markets to respond to this intervention with reason and a measure of realistic optimism," said Stephen Gifford, chief economist at Grant Thornton."The key now is for the markets to respond to this intervention with reason and a measure of realistic optimism," said Stephen Gifford, chief economist at Grant Thornton.
Earlier in Asia, Japan's Nikkei had closed down 9.4% at 9,203, its lowest finish since June 2003.Earlier in Asia, Japan's Nikkei had closed down 9.4% at 9,203, its lowest finish since June 2003.
Hong Kong's Hang Seng index closed 6.2% lower. India's main index fell 8% at one point but eventually closed down 4.3%.Hong Kong's Hang Seng index closed 6.2% lower. India's main index fell 8% at one point but eventually closed down 4.3%.
Markets in Australia, China and Taiwan were among other fallers.Markets in Australia, China and Taiwan were among other fallers.
Russia's Micex exchange has suspended trading until Friday, after the index dropped more than 14% in the first half-hour of trading.Russia's Micex exchange has suspended trading until Friday, after the index dropped more than 14% in the first half-hour of trading.
FTSE 100 INDEX: 8 October 2008FTSE 100 INDEX: 8 October 2008
Are you concerned about the global economic crisis? What questions would you like to ask the experts? Send us your questions using the form below?Are you concerned about the global economic crisis? What questions would you like to ask the experts? Send us your questions using the form below?
In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below.In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below.
Name
 Name