Page last updated at 11:58 GMT, Tuesday, 28 October 2008

Global shares recover lost ground

A passer-by looks at an electronic stock board in downtown Tokyo, Japan
The Nikkei index briefly fell below the 7,000 mark

European stock markets have risen on Tuesday, regaining some of the ground lost in recent days.

The UK's FTSE 100 index was up 1.8%, helped by strong results from BP, while in Germany a sharp rise in Volkswagen shares pushed the Dax index up 5.1%.

Earlier, Asian stock markets had staged late rallies, with the Nikkei 225 falling below the 7,000 level before recovering to close up 6.4%.

Trading is set to remain volatile as concerns about global growth remain.

In Germany, the major factor in the rise in the Dax index was another jump in the share price of Volkswagen, Europe's largest carmaker.

VW's share price tripled on Monday, and at one point had increased by as much as 60% on Tuesday. The shares jumped after news at the weekend that sports carmaker Porsche had increased its stake in the company to 42.6% as part of its aim to take a majority stake.

In London, better-than-expected profits from oil giant BP for the July to September period helped to lift the FTSE 100. BP's profits were boosted by July's record oil prices, although prices have since fallen back sharply.

In Paris, the Cac 40 index was also trading higher, up 89.94 points, or 2.9%, at 3,157.29.

Asian gains

Earlier in Japan, the Nikkei 225 had dropped below 7,000 points for the first time in 26 years, but later recovered close up 459.02 points at 7,621.92.

Japanese authorities said that to stabilise markets, they would bring forward a ban on traders selling shares that they did not already own and had not borrowed.

Shares in exporters were helped by a sharp fall in the value of the Japanese yen against the US dollar.

The yen has been appreciating against the dollar recently, but on Tuesday, its value fell to 95.51 yen to the dollar from 93.01.

Other Asian economies also had late rallies and clawed back some of their earlier losses.

Hong Kong's Hang Seng closed up 14.4%, which was its biggest daily percentage gain for 11 years. It followed a 12.7% decline on Monday.

Even after Tuesday's gains, the Nikkei and Hang Seng have fallen more than 30% since the beginning of the month.

South Korea's Kospi index initially dropped 2.6%, but later rose to finish 5% up on the day.


FTSE 100
23.70 0.44%
19.54 0.34%
Cac 40
14.48 0.38%
Dow Jones
78.53 0.76%
35.31 1.58%
BBC Global 30
20.65 0.36%
Data delayed by at least 15 minutes

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