Asia-Europe Markets buoyed by bailout

01-20-2009 | AFP

This is the second rescue plan unveiled by the government to save the banks

Panama Star Europe's gains followed earlier rises in Asia as investor confidence was buoyed by the prospect of Barack Obama's inauguration as U.S. President today. Wall Street was closed for the Martin Luther King national holiday. In Europe, Germany's DAX rose 72.05 points, or 1.7 percent, at 4,438.33, while France's CAC-40 was up 48.50 points, or 1.6 percent, to 3,065.25.

Most attention was on the FTSE 100 index of leading British shares, which was up 82.82 points, or 2 percent, at 4,229.88, after the British government said it would be creating a scheme to insure bank loans in the hope that the banks will start lending again. The new plan would require banks to identify their riskiest assets and allow them to pay a fee to insure them with the government in return for lending more money.