European stock markets closed sharply higher as hopes the US Congress will pass a multi-billion-dollar bank rescue package offset a much weaker-than-expected US employment report.
In London, the FTSE jumped 2.3% to finish at 4,980 points and in Paris, the CAC 40 added 3% to 4,081. In Frankfurt, the DAX was up 2.4% at 5,797. Dealers said news of 159,000 US job losses in September as the credit crunch hit industry failed to dent sentiment as investors looked to the House of Representatives for a lifeline after months of financial market turmoil.
Wall Street stocks raced higher Friday ahead of the key vote. Traders also mulled an announcement of a new merger deal for troubled bank Wachovia with Wells Fargo without government aid, although it came as a surprise to US authorities who had brokered a Wachovia-Citigroup marriage. Citi called it a 'breach' of its contract with Wachovia. The Dow Jones jumped 2% to 10,694 and the Nasdaq climbed 2.9% to 2,034.
In Dublin, the ISEQ index closed up 3.1% points at 3,944, with some banking shares mixed. Bank of Ireland dropped 3% to €4.48, but AIB leapt 11% to €7.40 and Irish Life & Permanent gained 7% to €6.50.
Earlier, Japan's Nikkei average fell 1.9% to a three-year closing low for its worst week in more than a year, with growing fears about the global economy hitting high-tech firms, autos and exporters. The Nikkei shed 216.62 points to 10,938.14, its lowest close since May 2005.
