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| Version 1 | Version 2 |
|---|---|
| Rate cut hope lifts global shares | Rate cut hope lifts global shares |
| (about 2 hours later) | |
| 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 was up 5.7%, while France's Cac 40 had added 7%. 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 Wednesday. | |
| 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 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. This was its second biggest one-day points rise, although it still leaves the index down 16% in the month so far. | |
| FTSE 100 INDEX: 29 October 2008*All Times GMT | FTSE 100 INDEX: 29 October 2008*All Times GMT |
| The gains on Wall Street helped Japan's Nikkei index to end Wednesday up 7.7%, with Japanese sentiment further lifted by hopes of a rate cut in Tokyo. The Nikkei is down 27% for the month. | |
| "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 0.2% as a result of 38% 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. | |