News

Wed, Oct 1st 2008, 13:25

Global shares were mixed in Wednesday trading ahead of a key vote in the US Senate on a revised version of the $700bn (£380bn) bank rescue plan.

With senators due to vote later in the day, hopes that enough changes had been made to get the bill passed saw shares close up strongly in Asia.

However, sentiment was more cautious in Europe, and while UK stocks have risen, German and French shares have fallen.

The bill needs backing by the Senate as well as the House of Representatives.

But the House of Representatives voted against the first version of the rescue deal on Monday.

Mixed picture

As the Senate prepares for the crucial vote, the global markets have reacted as follows:

• The UK's FTSE 100 was up 70 points, or 1.4%, at 4,973 in early afternoon trading in London
• Germany's Dax was down 26 points, or 0.5%, at 5,805, although the fall was intensified by carmaker Daimler dropping 4.5% on fears of a profit warning
• France's Cac 40 was 12 points, or 0.3%, higher at 4,044, after earlier posting minor falls
• Earlier on Wednesday, Japan's Nikkei index had ended up 1% while Australia's main index closed up 4%
• On Tuesday, the Dow Jones index of top US shares closed up 4.7%

UK stocks were also lifted by news the Bank of England is to pump a further $30bn (£17bn) into the money markets.

And banks Lloyds TSB and HBOS rose strongly - up 8.5% and 7.3% respectively - after Prime Minister Gordon Brown said he was confident Lloyds TSB's takeover of HBOS would go ahead.