Stock markets rally for a second day as governments approve rescue packages

MARKETS rallied again yesterday, building on the previous day’s record results, as news out of the United States continued to fill traders with hope of better times.

Despite what was at times a topsy-turvy day, with the Ftse 100 swinging from almost 5,750 points shortly after opening to around 5,400 at midday, London’s top index closed at 5,688.2, away from the extremes.

In the end the increase was 242.19 points (4.5%).

The boost came after the Ftse registered its biggest ever points jump on Tuesday and its second largest percentage increase in history.

The surge came as the German Government passed a massive rescue bill and the US Senate looked set to approve its $2trn (£1.7trn) rescue package.

“Government intervention is currently the name of the game as Germany will pursue a €750bn rescue package,” explained David Madden, an analyst at CMC Markets.

The US scheme, which was hammered out overnight between Senate Republicans and Democrats, will send cheques to most Americans in the post to stimulate demand and help businesses and banks.

The bill will still need to be given the thumbs up by Congress.

The good mood in the UK was replicated on the other side of the pond where the S&P 500 and the Dow Jones were up by more than 3% and 5% respectively.

On the continent, France’s Cac index gained 3.7%, while the Frankfurt-based Dax jumped by 1.3%. A pound is now worth more on global markets, as sterling gained 0.7% to $1.1834. One pound will buy €1.0911, a 0.1% rise.

In company news, shares in Halfords jumped by over a quarter as it announced some stores will reopen and revealed recent weeks had seen “very strong” sales. Next shares surged 8%.