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CONFIDENCE is rising that the worst of the global credit crisis may be over, with governments and central banks around the world coming up with a credible response.
Share markets soared yesterday in response to the announcement by US Treasury Secretary Hank Paulson that he would follow the British example of nationalising banks and guaranteeing both bank deposits and debts.
The Australian share market jumped 154.5 points, or 3.7 per cent, with the S&P/ASX200 ending the day at 4335.2 points.
This was much smaller than the 11 per cent rally on the Dow Jones index in New York and Japan's Nikkei index, which leapt 14 per cent yesterday.
Wayne Swan said yesterday that fundamental reforms to the world financial system were still required, however he said: "Hopefully, actions of recent days will place a floor under what is occurring internationally."
There was a small fall in interbank rates in both London and in Australia yesterday, however further reductions are expected as full details of the bank rescue packages are unveiled.
British Prime Minister Gordon Brown and Chancellor Alistair Darling are being given the credit for coming up with a credible package, after markets dismissed the US Treasury's plan to buy $US700 billion ($1 trillion) in bad assets.
The US will now use much of that money to take equity stakes in nine of the largest banks with the possibility of further investments in smaller banks.
Read full
Share markets soared yesterday in response to the announcement by US Treasury Secretary Hank Paulson that he would follow the British example of nationalising banks and guaranteeing both bank deposits and debts.
The Australian share market jumped 154.5 points, or 3.7 per cent, with the S&P/ASX200 ending the day at 4335.2 points.
This was much smaller than the 11 per cent rally on the Dow Jones index in New York and Japan's Nikkei index, which leapt 14 per cent yesterday.
Wayne Swan said yesterday that fundamental reforms to the world financial system were still required, however he said: "Hopefully, actions of recent days will place a floor under what is occurring internationally."
There was a small fall in interbank rates in both London and in Australia yesterday, however further reductions are expected as full details of the bank rescue packages are unveiled.
British Prime Minister Gordon Brown and Chancellor Alistair Darling are being given the credit for coming up with a credible package, after markets dismissed the US Treasury's plan to buy $US700 billion ($1 trillion) in bad assets.
The US will now use much of that money to take equity stakes in nine of the largest banks with the possibility of further investments in smaller banks.
Read full
