Europe’s stockmarkets have rebounded, all the major bourses gaining strongly after a cut in US interest rates, and a surge on Wall street. Leading the charge was London, which put on more than three and a half percent. Others followed suit, putting on at least two percent apart from Frankfurt, Paris, Lisbon, and Madrid, who still managed to notch up gains. And it is all down to the Washington cavalry. The Federal Reserve came riding to the market’s rescue by clipping half a percent off its bank lending rate, making billions in fresh cash available to banks trying to plug their bad loan holes.
Something semed to be needed after the bloodletting overnight in Asia, where Tokyo lost nearly five and a half pecent, and the region as a whole lost nearly all of this year’s gains. In Europe, that bad news hit the markets immediately on opening, but shakiness was replaced with confidence as the news came in from America, where the Dow opened in positive territory.