FTSE recovers as government plans banking reform
Shares this morning rebounded after yesterday's panic-induced falls.
In London, the FTSE 100 opened 1.8% higher, rising 84.65 points to 4,673 points and soon extended those gains, moving almost 3 per cent higher at 4717.48, up 128.29.
The rise followed yesterday's record 7.8% fall as panic swept global financial markets.
America's Dow Jones industrial average was down to a four-year low after dipping below 10,000 points for the first time since October 2004.
The British Chambers of Commerce that Britain is already in recession and could face a prolonged downturn.
Todya's rebound in London was mirrored in other European market, as France's CAC 40 gained 3.2 per cent, and the Dax in Germany rose by more than 2 per cent.
The Government plans to raise £40 billion of fresh capital along with banking reform legislation in a series of measures due to be outlined today in an effort to calm markets.
