Shares up after US rate cut

The London market surged 1.7% ahead today as stocks rallied on news that US policymakers cut interest rates by three-quarters of a percentage point.

The US Federal Reserve slashed the cost of borrowing as fears of a recession mounted, sending stocks soaring on the FTSE 100 Index.

The Footsie rose by more than 100 points at one stage after the news, recovering after an abysmal start that had seen the index plummet by 4.3% in the first few minutes of trading.

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