Bear Stearns bid raises markets

26 March 2008

Shares in Europe and Asia have rallied after yesterday's decision by JP Morgan Chase to up its valuation of investment bank Bear Stearns.

"It's all about Bear Stearns today," Martin Slaney, head of derivatives at GFT Global Markets told the Financial Times.

"We have seen one-way traffic on our FTSE price this morning, with our customers buying the quote all the way up. Yesterday’s strong US housing data is an added tonic."

The UK's FTSE 100 index was up 3.25 per cent on Thursday. Earlier Hong Kong's Hang Seng index earlier increased by five per cent and shares in Australia added 3.3 per cent.

Many sensed that the rises could be the start of a trend.

"We have gone down low enough and the market is ready for a rebound," Francis Lun, a general manager at Fulbright Securities in Hong Kong told the BBC.

"I think this is the beginning of a rally."

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