Markets gain ground as ECB hints at rate cut

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A strong hint from the European Central Bank it will cut interest rates next month has buoyed markets in early trading, following sharp gains in the US and Asia overnight.

The FTSE rose 2.12% this morning to trade at 5,197, while the German Dax and the French Cac 40 posted gains of 3.17% and 3.06% respectively, mirroring the Eurostoxx index's 3% rise. US markets gained ground overnight, with the Dow Jones and the S&P 500 both ending more than 2% higher after minutes from the G20 summit in Washington pointed to a new rescue plan for the eurozone's debt-laden nations. Comments by ECB governing council members yesterday suggested the central bank is considering cutting interest rates by 50 basis point at the next meeting on 6 October. The ECB may also b...

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