26 Nov 2008

Europe shares end higher

7:12 am on 26 November 2008

European shares made slight gains on Tuesday, after the US Federal Reserve pledged $US800 billion in funds to aid the United States economy.

The FTSEurofirst 300 index of top European shares ended unofficially 0.3% higher at 831.25 points.

The Fed is to buy debt and mortgage-backed securities to loosen the flow of credit for mortgages, loans for students, autos and credit cards.

Banks and energy stocks gained the most: HSBC rose 6% and Credit Suisse was up 11%. BP rose 1.5% and BG Group rose 4%.

Rio Tinto fell by 37% after BHP Billiton abandoned its bid for the group.

In Paris, the CAC 40 gained 1.18% to end at 3,209.56 points; in Frankfurt, the DAX edged up 0.13% to 4,560.42 points.

In London, The FTSE 100 closed up 0.4%, or 18.29 points, at 4,171.25.

On Monday, the index rose 9.8%.

The index is down more than 35% to date this year, due to the global financial crisis.