Initial losses followed by recovery
The FTSE 100 has rallied after a difficult opening to trading this morning. At 1300, the stock market was 31.13 points up at 4849.90.
Earlier, shares fell by approximately 140 points following uncertainty over the US government’s $700bn bail out plan.
Congress has yet to agree on a financial package that is aimed to restore confidence in the paralysed US banking system.
Bank shares in the UK were affected with HBOS shares losing almost 20% of their value, falling to 114.40p before recovering to 125.90p at the time of writing.
Shares in RBS also fell sharply during early trading, losing almost 12% in value before reaching 169p at the time of writing, a fall of 6.6% from the start of the day.
