First Choice Loan News
Markets Counter To $180bn Cash Booster
Global markets are under pressure over the last few days amid the collapse of Wall Street giant, Lehman Brothers, and the rescue of US insurance giant AIG, with many worried about other financial institutions would suffer the same fortune.
US stocks gained in early trading today after Central banks from the UK, US, Europe, Canada, Switzerland and Japan injected $180 billion (£100 billion) into the global banking system in a offer to calm down the investors.
The vaccination of cash is the fourth such intensive attempt since the beginning of credit crunch last summer.
The main Dow Jones index added 1.34%, or 142.2 points, at 10,751.8, in early exchanges in New York.
Meanwhile, in early afternoon trading, the FTSE 100 index added 36 points at 4,948.7, while Germany’s Dax index gained 0.8% and France’s Cac 40 increased 1.23%.
Yesterday, the Bank of England extended its Special Liquidity Scheme until 30th January 2009 ‘in light of the present unmanageable market conditions‘. The scheme was due to terminate next month.
In the UK, the news of the Lloyds TSB and HBOS merger raised shares but in the US, there are worries for Goldman Sachs and Morgan Stanley, the remaining two independent investment banks on Wall Street, after shares in the two organizations crashed down.
According to analysts, Morgan Stanley is supposed to be holding merger discussions with Wachovia, America’s fourth-largest bank, while Goldman Sachs may not be able to stay independent.