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Global shares recover lost ground | Global shares recover lost ground |
(about 2 hours later) | |
US stock markets rose in early trade on Tuesday, following gains seen in European and Asian markets. | |
On Wall Street, the Dow Jones index rose 202.62 points, or 2.5%, to 8378.39, while the S&P 500 climbed 21.15 points, or 2.5%, to 874.95. | |
In Europe, the UK's FTSE 100 index was up 3.1%, Germany's Dax was 8.2% higher and France's Cac added 2.3%. | |
Earlier in Asia, Japan's Nikkei index fell below the 7,000 at one point before recovering to close up 6.4%. | |
Steady gains | |
On Wall Street, shares in Boeing rose in early trade on news the firm had agreed a tentative deal to end a strike by its biggest union. | |
The strike is the longest the planemaker's plants have seen in 13 years and revenue losses from the action are estimated at $100m (£64m) a day. | |
The gains in the US follow a strong performance by the main European stock markets. | |
In early afternoon trading, the UK's FTSE 100 index was helped by better-than-expected results from both oil giant BP and insurance firm Aviva. | |
In Germany, the major factor behind the sharp rise in the Dax index was another jump in the share price of Volkswagen, Europe's largest carmaker. Its shares were trading 51% up by early afternoon. | |
VW's share price tripled on Monday, and at one point had increased by as much as 60% on Tuesday. The shares jumped after news at the weekend that sports carmaker Porsche had increased its stake in the company to 42.6% as part of its aim to take a majority stake. | VW's share price tripled on Monday, and at one point had increased by as much as 60% on Tuesday. The shares jumped after news at the weekend that sports carmaker Porsche had increased its stake in the company to 42.6% as part of its aim to take a majority stake. |
In Paris, the Cac 40 index was also trading higher, up 71.58 points at 3,138.93. | |
Asian markets | |
Earlier in Japan, the Nikkei 225 had dropped below 7,000 points for the first time in 26 years, but later recovered close up 459.02 points at 7,621.92. | Earlier in Japan, the Nikkei 225 had dropped below 7,000 points for the first time in 26 years, but later recovered close up 459.02 points at 7,621.92. |
Japanese authorities said that to stabilise markets, they would bring forward a ban on traders selling shares that they did not already own and had not borrowed. | Japanese authorities said that to stabilise markets, they would bring forward a ban on traders selling shares that they did not already own and had not borrowed. |
Shares in exporters were helped by a sharp fall in the value of the Japanese yen against the US dollar. | Shares in exporters were helped by a sharp fall in the value of the Japanese yen against the US dollar. |
The yen has been appreciating against the dollar recently, but on Tuesday, its value fell to 95.51 yen to the dollar from 93.01. | The yen has been appreciating against the dollar recently, but on Tuesday, its value fell to 95.51 yen to the dollar from 93.01. |
Other Asian economies also had late rallies and clawed back some of their earlier losses. | Other Asian economies also had late rallies and clawed back some of their earlier losses. |
Hong Kong's Hang Seng closed up 14.4%, which was its biggest daily percentage gain for 11 years. It followed a 12.7% decline on Monday. | Hong Kong's Hang Seng closed up 14.4%, which was its biggest daily percentage gain for 11 years. It followed a 12.7% decline on Monday. |
Even after Tuesday's gains, the Nikkei and Hang Seng have fallen more than 30% since the beginning of the month. | Even after Tuesday's gains, the Nikkei and Hang Seng have fallen more than 30% since the beginning of the month. |
South Korea's Kospi index initially dropped 2.6%, but later rose to finish 5% up on the day. | South Korea's Kospi index initially dropped 2.6%, but later rose to finish 5% up on the day. |