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| Version 5 | Version 6 |
|---|---|
| Rate cut hope lifts global shares | Rate cut hope lifts global shares |
| (about 1 hour 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%. | 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. |
| Stock markets across Europe climbed higher, as indexes rose 9.4% in Madrid, 9.9% in Milan and 9.1%in Amsterdam. | |
| Big bank stocks were among the day's top winners. Shares in Spanish lender Santander, the eurozone's largest bank by market capitalisation, rose 14.3%. Swiss banking giants UBS and Credit Suisse rose 15.2% and 11.4% respectively. | |
| Germany's leading Dax index bucked the upward trend, however, closing down 14.8 points, or 0.3%, after a turbulent day's trading, during which shares in Volkswagen fell 45.3%. | |
| Rate cuts | |
| Many analysts expect the Bank of England and European Central Bank to follow the US 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. |