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M. Continuo

World stocks rally after bank bailout plans


    LONDON (Reuters) - World stocks rose 2 percent on Monday after hitting a four-year low last week as the world's policymakers stepped up plans to bail out the banking sector and prevent the global economy from tumbling into recession.

    European stocks joined Asia's rally at the market open after Britain injected 37 billion pounds into leading banks and Australia and New Zealand guaranteed all bank deposits. France, Germany and Italy were set to announce how they will buy stakes in ailing banks.

    MSCI world equity index rose 2.2 percent while emerging market stocks rose 3.3 percent.

    (Reporting by Natsuko Waki; Editing by Andy Bruce)