Markets rally, but banks under stress
Updated on 30 September 2008
Our economics correspondent Faisal Islam reports on the continuing stresses on the markets, which today prompted the Irish to guarantee bank deposits.
Shares in America and Britain have risen after big falls yesterday, as the markets predict that the US House of Representatives will finally sign up to the administration's financial rescue package in the next few days.
Following the House's dramatic rejection of the deal yesterday, President Bush warned that the US economy was at a "critical moment".
His words helped to lift the markets as they opened in New York. There was also a bounce in London, but HBOS took a hit - despite Lloyds TSB's takeover bid.
Across the globe, most markets saw a bounce, recovering some of yesterday's losses.
- Today in Hong Kong, the stock exchange closed up - with a 0.76 per cent rise.
- Japan's benchmark Nikkei index closed down - a 4.12 per cent drop, it's now at its lowest level for over three years.
- India's main index in Mumbai made an overall gain of 2.10 per cent.
- Closer to home, Frankfurt rose throughout the day to regain overnight losses finishing 0.4 per cent up on the day.
- In the City of London, trading jumped just before the markets closed, up 1.74 per cent
But banks had a torrid time.
HBOS shares were down nearly 14 per cent, they've lost more than 30 per cent of their value since Lloyds TSB announced its rescue deal. Lloyds' shares rose 4.26 per cent on rumours that they might now downgrade their offer.
