European stock markets closed sharply higher in a technical rebound after very heavy losses yesterday on increasing concerns the global economy faces a long and painful recession.
In London, the FTSE 100 index of leading shares rose 1.4% to 4,123 points. In Paris, the CAC 40 was up 2.35% at 3,153 and in Frankfurt the DAX jumped 3.1% to 4,531. Yesterday, European markets suffered very heavy losses of 5% and more after news that the US economy, the world's largest, was officially in recession.
Wall Street rebounded Tuesday from a brutal session as sentiment was lifted by the latest business update from General Electric and hopes for a government rescue for ailing Detroit automakers.
The Dow Jones rallied 2.9% to 8,389 shortly before 6.20pm, coming off a horrific 679-point loss yesterday. The Nasdaq climbed 3.45% to 1,446. Market action came as the Big Three Detroit automakers were pressing the US Congress for emergency loans of $25 billion to avert a potentially catastrophic collapse. General Motors, Ford and Chrysler were presenting their business plans outlining how they would restore profitability.
Dublin's ISEQ index of Irish shares closed nine points (0.4%) higher at 2,516. Shares in Aer Lingus were up four cent at €1.32 ahead of the result of a vote by SIPTU members at the airline on the alternative plan to the company's outsourcing measures.
Banks experienced another negative day, with Bank of Ireland slumping almost 15 cent to €1.27, Anglo Irish adding nine to 94 cent and AIB losing 24 to €2.33.
Earlier, Japan's Nikkei index plunged 6.35% to finish at 7,863.69. The Bank of Japan unveiled new steps aimed at tackling a credit crunch by making it easier for commercial banks to borrow money, but the announcement had little impact on stocks.
