28 Sep 2011

Shares rise on hopes of euro zone debt plan

1:44 pm on 28 September 2011

Share markets in Europe and the US have risen on hopes that European leaders and the International Monetary Fund will agree a package to solve the eurozone debt crisis.

On Wall Street, stocks rose for a third day, though ended off their highs for the day after a report suggested cracks were emerging in a previously agreed deal to tackle the crisis.

The plan includes a 50% writedown of Greek government debt, meaning banks would take a serious hit.

The Dow Jones industrial average finished up 1.33%, the Standard & Poor's 500 Index was 1.07% higher and the Nasdaq Composite Index rose 1.2%.

Shares also rallied on European markets, with London's FTSE 100 up 4%, Paris's CAC 40 rising 5.7% and Frankfurt's DAX ending the day 5.3% higher.

Japan's Nikkei was on Tuesday up 236 points to 8607.