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| Version 7 | Version 8 |
|---|---|
| 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%. |
| After European markets closed, the US Federal Reserve cut its key interest rate from 1.5% to 1%. | After European markets closed, the US Federal Reserve cut its key interest rate from 1.5% to 1%. |
| But in New York, the Dow Jones and S&P were down slightly after a volatile day of trading, with only the Nasdaq edging into positive territory. | |
| At close of trade in Wall Street, the Dow Jones was down 0.82%, or 74.16 points, at 8990.96. The S&P 500 was down 1.11%, or 10.42 points, at 930.09 and the Nasdaq was ahead 0.47%, or 7.74 points, at 1657.21. | |
| It follows an 11% jump on the Dow on Tuesday. | |
| Earlier stock markets across Europe climbed higher, as indexes rose 9.4% in Madrid, 9.9% in Milan and 9.1% in Amsterdam. | Earlier 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. | 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%. | 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 | Rate cuts |
| Many analysts expect the Bank of England and European Central Bank to follow the US lead and cut rates next week. | 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 |
| 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. |