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| Version 0 | Version 1 |
|---|---|
| Rate cut hope lifts global shares | Rate cut hope lifts global shares |
| (about 1 hour later) | |
| UK and other European shares have risen sharply in early trading, buoyed by growing expectations that central banks will cut interest rates further. | UK and other European shares have risen sharply in early trading, buoyed by growing expectations that central banks will cut interest rates further. |
| The UK's FTSE 100 index was up 4% to 4,083, while France's Cac had added 5.8%. The gains followed an 11% jump in the US Dow Jones index on Tuesday. | |
| The Federal Reserve is widely tipped to cut US rates later on Tuesday. | The Federal Reserve is widely tipped to cut US rates later on Tuesday. |
| Many analysts expect the Bank of England and European Central Bank to follow suit next week. | Many analysts expect the Bank of England and European Central Bank to follow suit next week. |
| The optimism is fuelled by the prospect of rate cuts Nicole Sze, Bank Julius Baer | |
| The Fed is expected to trim US rates by half a percentage point to 1%. | The Fed is expected to trim US rates by half a percentage point to 1%. |
| UK interest rates are currently at 4.5%, after the Bank of England cut them by half a percentage point earlier this month in a co-ordinated move with both the Fed and European Central Bank (ECB). | UK interest rates are currently at 4.5%, after the Bank of England cut them by half a percentage point earlier this month in a co-ordinated move with both the Fed and European Central Bank (ECB). |
| The ECB's interest rate for the eurozone stands at 3.75%. | The ECB's interest rate for the eurozone stands at 3.75%. |
| 'Fuelling optimism' | 'Fuelling optimism' |
| Growing expectations of a rate cut by the Fed saw the Dow Jones close Tuesday up 10.88%, or 889.35 points, at 9,065, its second biggest one-day points rise. | Growing expectations of a rate cut by the Fed saw the Dow Jones close Tuesday up 10.88%, or 889.35 points, at 9,065, its second biggest one-day points rise. |
| FTSE 100 INDEX: 29 October 2008*All Times GMT | FTSE 100 INDEX: 29 October 2008*All Times GMT |
| This helped Japan's Nikkei index end Wednesday up 7.7%, with Japanese sentiment further lifted by hopes of a rate cut in Tokyo. | This helped Japan's Nikkei index end Wednesday up 7.7%, with Japanese sentiment further lifted by hopes of a rate cut in Tokyo. |
| By 1000 GMT, the FTSE 100 was up 156.5 points, while in France the Cac 40 had added 183 points to 3,298. | |
| "The optimism is fuelled by the prospect of rate cuts," said Singapore-based investment analyst Nicole Sze of Bank Julius Baer & Co. | "The optimism is fuelled by the prospect of rate cuts," said Singapore-based investment analyst Nicole Sze of Bank Julius Baer & Co. |
| "Wall Street's rally brought some extra confidence to the market, reminding investors that selling might have been overdone and this might be a good time to pick some values." | "Wall Street's rally brought some extra confidence to the market, reminding investors that selling might have been overdone and this might be a good time to pick some values." |
| The only fall seen was seen in Germany, where the Dax index was down 3.2% as a result of 43% drop in Volkswagen's share price. | |
| Volkswagen's share price had jumped on Tuesday because of panic buying from certain hedge funds who had wrongly bet that the price would fall. | |
| While global stock markets have rallied in recent days, they remain considerably lower than they were in September. | |
| As of 27 October, the Dow Jones had fallen 25% during the month. | As of 27 October, the Dow Jones had fallen 25% during the month. |