Fed rate cut boosts Wall Street

29/10/08 07:57 CET

Financial Crisis

world news

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The promise of an interest rate cut today from the Federal Reserve has lifted some of the gloom on Wall Street.

The Dow Jones closed almost 11 percent higher, and the gains were across the board.

Some analysts say stock prices have hit rock bottom and it is time to buy again, but most remain cautious.

Patrick Newport of IHS Global Insight said: “The Fed and the Treasury have implemented a number of proposals to thaw the financial markets. They’re beginning to thaw but I think we have to wait a few more weeks to see what the situation with the financial markets is- is credit flowing; are people able to borrow money to buy homes?”

In Tokyo the Nikkei began its day seven percent up.

Earlier in Europe, respectable gains in London and Paris were eclipsed by the DAX in Frankfurt, which closed 11.25 percent to the good.