Stocks boosted by CIT rescue

LONDON: World stock markets rose strongly yesterday as already upbeat investors welcomed reports that US commercial lender CIT Group Inc is close to securing enough funding to avoid filing for bankruptcy protection from creditors.

European shares followed Asia higher, with the FTSE 100 index of leading British shares up 62.37 points, or 1.4 percent, at 4,451.12 while Germany's DAX rose 66.19 points, or 1.3 percent, to 5,044.59. The CAC-40 in France was 47.61 points, or 1.5 percent, higher at 3,266.07.

The main talking point in the markets yesterday was the future of CIT, which last week came close to bankruptcy when the Obama administration balked at bailing it out. The news that the ailing lender has approved a deal with bondholders for $3 billion in emergency funding has pushed Wall Street futures higher. Dow futures were up 57 points, or 0.7 percent, at 8,754 while the broader Standard & Poor's 500 futures rose 5.9 points, or 0.6 percent, to 942.80.