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/7696887.stm
The article has changed 9 times. There is an RSS feed of changes available.
| Version 4 | Version 5 |
|---|---|
| Rate cut hope lifts global shares | Rate cut hope lifts global shares |
| (19 minutes later) | |
| UK and other European shares have risen sharply, buoyed by growing expectations that central banks will cut interest rates further. | UK and other European shares have risen sharply, buoyed by growing expectations that central banks will cut interest rates further. |
| The UK's FTSE 100 index closed up 8.05%, and France's Cac 40 added 9.23%. | |
| In New York, the Dow Jones Industrial Average was barely changed, rising 0.6% in early trading, following its 11% jump on Tuesday. | In New York, the Dow Jones Industrial Average was barely changed, rising 0.6% in early trading, following its 11% jump on Tuesday. |
| The Federal Reserve is widely expected to cut US rates from 1.5% to 1% later on Wednesday. | The Federal Reserve is widely expected to cut US rates from 1.5% to 1% later on Wednesday. |
| Many analysts expect the Bank of England and European Central Bank to follow the American lead and cut rates next week. | Many analysts expect the Bank of England and European Central Bank to follow the American lead and cut rates next week. |
| The optimism is fuelled by the prospect of rate cuts Nicole Sze, Bank Julius Baer | The optimism is fuelled by the prospect of rate cuts Nicole Sze, Bank Julius Baer |
| 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%. |
| FTSE 100 INDEX: 29 October 2008*All Times GMT | FTSE 100 INDEX: 29 October 2008*All Times GMT |
| 'Fuelling optimism' | 'Fuelling optimism' |
| Tuesday's jump in share prices on Wall Street inspired a 7.7% rise in Japan's Nikkei index on Wednesday, with the Japanese market also lifted by hopes of a rate cut in Tokyo. | Tuesday's jump in share prices on Wall Street inspired a 7.7% rise in Japan's Nikkei index on Wednesday, with the Japanese market also lifted by hopes of a rate cut in Tokyo. |
| "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 major market bucking the trend was in Germany, where the Dax index was down 1.5% as a result of a 41% drop in Volkswagen's share price. | The only major market bucking the trend was in Germany, where the Dax index was down 1.5% as a result of a 41% drop in Volkswagen's share price. |
| Volkswagen's share price had jumped on Tuesday because of panic buying from certain hedge funds, which had wrongly bet that the price would fall. | Volkswagen's share price had jumped on Tuesday because of panic buying from certain hedge funds, which had wrongly bet that the price would fall. |