Lloyds TSB takover of HBOS boosts FTSE 100

The FTSE was up 1.9 percent by midday Thursday, this comes as billions of dollars are pumped in by the major central banks to improve the liquidity, and Lloyds TSB finally struck the deal to buy HBOS.

The morning trading was volatile, by 1058 GMT, the FTSE 100 was up 87.4 points at 4,999.7 it bounced earlier from as low as 4,883.3.

On Wednesday the UK benchmark lost 2.3 percent as the high volatility was taking its toll, it was down 7.8 percent on the week, this was the biggest fall since July 2002.

In a co-ordinate effort the Federal Reserve along for other central banks pumped billions of dollars into the world’s money markets in an effort to ease the squeeze no funding.

Royal Bank of Scotland’s share price gained 7.6 percent and Barclays shares went up 4.6 percent. HSBC share price saw a rise of 1.9 percent.

Source: Guardian