European stock markets closed sharply higher as investors looked for bargains after recent heavy losses and took heart from prospects for a cut in US interest rates.
The London FTSE 100 index jumped 1.9% 3,926, with BP adding 5% after it reported a 148% rise in third quarter profits. In Paris the CAC 40 rose 1.5% to end the day at 3,115. The Frankfurt DAX soared 11% to 4,823, again powered by big gains for Volkswagen which soared 81% to add to its 146% surge yesterday.
Wall Street shares rose Tuesday amid a global stock market rebound, with the Dow Jones up 3.2% to 8,438 at 5.10pm. The Nasdaq rose 2.9% to 1,203. The market action came as the US Federal Reserve was set to begin a two-day meeting expected to deliver a cut in the federal funds rate aimed at stimulating flagging growth and easing the credit crisis.
Dublin's ISEQ index reversed early gains to finish 1.8% lower at 2,520. The banks were mixed with Irish Life and Permanent sown 3.3% to €1.47 after roaring ahead 40% earlier. The boost had come after IL&P gave an earlier than expected market update on the level of its exposure to three banks in Iceland.
Shares in Bank of Ireland were down 1.5%% to €1.36, while AIB added 0.6% to stand at €3.17. But Anglo Irish Bank slipped another 20% to €1.13 after slumping 24% yesterday.
Meanwhile, Asia's battered stock markets rallied this morning after several days of heavy losses as investors hunted for bargains despite continued worries about the ailing global economy.
Most markets around the region bounced back from an early sell-off. Hong Kong shares closed 14.4% higher, rebounding strongly after plunging 12.7% the previous day.
Tokyo ended with a gain of 6.4% as the yen fell sharply and investors hunted for bargains after the Nikkei index tumbled to a 26-year low. Seoul rose 5.6% and Shanghai firmed 2.8%.
