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Shares in Europe stage powerful comeback
Phoenix News.Net
Monday 13th October, 2008
Dramatic moves by central banks and government around the world in the past two weeks, culminating on the weekend and Monday, have seen stocks in Europe surge.
At the close of trading the Swiss SMI was up 11.39%. The German Dax was ahead 11.40%, while the Paris-based CAC 40 rebounded 11.18%. Londond's FTSE 100 was up 8.23%.
In Brussels the Bel-20 was up 9.48%. In Oslo the OSE All Share was up 5.80%. The Madrid General was ahead 10.37%. The Stockholm General was up 8.83%. The ATX in Vienna climbed 12.77%.
Leaders from European countries reached an historic agreement Sunday to guarantee inter-bank lending and safeguard financial institutions from collapse.
The agreement struck by leaders of the fifteen countries was another step in adopting a common European approach to tackling the crisis that is pummeling financial institutions around the world.
Following the Paris talks, French President Nicolas Sarkozy - the current European Union President - outlined the details.
Mr. Sarkozy said leaders of the "euro bloc" countries and Britain had agreed on banking guarantees lasting until December 2009, along with inter-bank loans. They can also underwrite new loans of up to five years, among other measures.
The French President said the plan addressed all aspects of the financial crisis and that individual European countries, including France, would unveil their own domestic economic plans on Monday.
In Germany no time was being wasted as the finishing touches on Monday were being put to planned legislation which is designed to totally restore liquidity and confidence to the banking and insurance sectors. The package to go before parliament is worth up to 470 billion euros ($649 billion).
Prior to Sunday's summit, European leaders sent out positive signals about tackling the crisis. That included British Prime Minister Gordon Brown.
"This is an important moment for the world economy," said Gordon Brown. "The decisions we make in the next few days are decisions that will affect us for many years ahead and the eyes of the world are now looking to their governments to help restore confidence in the financial markets."
Leaders of all 27 EU members are expected to examine the agreement when they meet in Brussels on Wednesday.
On foreign exchange markets Monday the euro was stronger at 1.3626 in late afternoon trading in Europe. The British pound rose sharply to 1.7386, as did the Australian dollar to .6726. The Swiss franc edged up to 1.1286. The Canadian dollar rose to 1.1628.
Only the Japanese yen went against the trend, falling to 100.31.
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kawahchan
10-13-08, 10:02 AM |
Shares in Europe stage powerful comeback
CLIMB UP, McCAIN !, CLIMB UP !! ON Columbus Day’s early morning, now the Wall Street’s stock market is climbing up to reach about 332.37 point at 7:00 a.m. California time. CLIMB, McCAIN, CLIMB UP, you can do it ! We American people TRUST you.
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