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FTSE 100 up on Fannie and Freddie rescue

08/09/2008

The FTSE 100 jumped 3.73 per cent at 8.47 BST this morning, after US government's move to save mortgage backers Freddie Mac and Fannie Mae.

After the dismal performance at the end of last week – with the index dropping 5240.70 from over 5600 – the measure was up 195.50 points to 5,436.20.

In Asia this morning the Nikkei was up 3.4 per cent – the biggest rise in five months on the news.

Back in London, financial firms – unsurprisingly – saw the greatest benefit of the US government move.

HBOS was up 12.70 per cent, while Schroders and Schroders non-voting stock gained 12.25 per cent and 12.56 per cent respectively.

Builders merchant Wolseley – which has substantial in interest in the US – gained 12.10 per cent and Royal Bank of Scotland rose 11.83 per cent.

Barclays was up 11.82 per cent.

Outside the top 100 firms, builders benefited – with Barratt Developments up 12.24 per cent and Taylor Wimpey gaining 11.26 per cent.

The optimism in London saw just three firms drop in the FTSE 100 – with GlaxoSmithKline down 2.09 per cent, AstraZeneca falling 1.19 per cent and Cadbury down 0.08 per cent.

On the currency markets, sterling fell 0.79 per cent against the dollar so £1 buys $1.77320 and was down .013 per cent against the euro to €1.24150. This makes €1 worth £0.80595.