Stock markets bounce as governments step in

BLACK Monday turned to momentous Monday yesterday as European governments scrambled to finalise rescue packages in a bid to protect their banking sectors.

France, Germany, Spain and Austria committed €1.1 trillion to guarantee bank loans and take stakes in lenders, racing to prevent the collapse of the financial system.

Germany approved a package worth up to €500 billion while France will spend about €350bn. They will also use this cash to take stakes in banks.