25-03-2008
Stock markets buoyed by US bank news
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Stock markets across Europe and Asia have been positively affected by news in the US banking sector.
Following an announcement that JP Morgan Chase would be increasing its offer for Bear Stearns, a rival US bank, shares in Japan's Nikkei increased by two per cent, while the UK's FTSE 100 index increased to 5,674 during early trading today (March 25th), a rise of 3.25 per cent.
Elsewhere, share values in Australia increased by 3.3 per cent, while Hong Kong's Hang Seng rose by 6.4 per cent. "I think this is the beginning of a rally," said Francis Lun, a general manager at Hong Kong-based Fulbright Securities. "We have gone down low enough and the market is ready for a rebound. Banks will lead the rally."
It has been reported that stocks have also been affected by an unexpected increase in the number of housing sales in the US. Bear Stearns was established in 1923 and has its headquarters in New York City.