Interest rate cuts boost shares

Wednesday was a bumper day for European stocks, which closed up almost 10 percent.

Investors were heartened by interest rate news from the US and China as well as increasing signs that the credit crunch is easing.

Badly battered banks were the biggest gainers in that bounce back along with insurance companies.

Higher commodity prices pushed up oil and metals producers.

Carmaker Daimler surged after analysts at Merrill Lynch said its shares were “oversold’‘

Of the region’s bourses only Frankfurt ended the session in the red and that was because of distortion to the Dax from the anomaly involving Volkswagen’s shares.

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