European stock markets steady
Tuesday, 23 September 2008
LONDON, Sept 22 (AFP): European stock markets steadied Monday, after earlier gains in Asia, as investors hoped that the massive US rescue plan to relieve the financial system of toxic debt would end the global crisis.
Frankfurt, London and Paris held steady after dramatic fluctuations last week that culminated in the emergence of a costly US initiative to bail out the distressed financial sector.
The US Congress was due to consider an unprecedented US$700-billion rescue plan to buy bad mortgage-related assets from financial institutions, and draw a line under last week's markets chaos that saw the demise of US investment bank Lehman Brothers and sale of peer Merrill Lynch.
"We must hope that Congress unites behind the US Treasury plan and that by the end of this week financial markets can justify a sigh of relief," said BGC Partners analyst Howard Wheeldon in London.
"Clearly these moves will come at a cost that will need to be paid for over many years ahead."
At the same time, the US Federal Reserve has agreed to allow investment banks Goldman Sachs and Morgan Stanley to become bank holding companies, giving them easier access to credit and help them survive the current crisis.
Frankfurt, London and Paris held steady after dramatic fluctuations last week that culminated in the emergence of a costly US initiative to bail out the distressed financial sector.
The US Congress was due to consider an unprecedented US$700-billion rescue plan to buy bad mortgage-related assets from financial institutions, and draw a line under last week's markets chaos that saw the demise of US investment bank Lehman Brothers and sale of peer Merrill Lynch.
"We must hope that Congress unites behind the US Treasury plan and that by the end of this week financial markets can justify a sigh of relief," said BGC Partners analyst Howard Wheeldon in London.
"Clearly these moves will come at a cost that will need to be paid for over many years ahead."
At the same time, the US Federal Reserve has agreed to allow investment banks Goldman Sachs and Morgan Stanley to become bank holding companies, giving them easier access to credit and help them survive the current crisis.