Shares recover after government action

SHARES in London bounced back today after governments and central banks across the world took firm action to ease the panic that had gripped markets all week.

SHARES in London bounced back today after governments and central banks across the world took firm action to ease the panic that had gripped markets all week.

By lunchtime today the FTSE was up eight per cent - nearly eradicated the 10pc losses faced earlier this week.

Today's recovery was sparked by spectacular gains in bank shares - the value of the Royal Bank of Scotland and HBOS shares increased by more than 50pc at one stage before settling back to gains of nearly 40pc.

And Lloyds TSB was rewarded for proposing a takeover of HBOS with a 35pc rise in its value.