Citi rescue lifts European stocks
Major markets climb in the early going as investors cheer U.S. aid for financial giant. Citi surges in Germany.
LONDON (CNNMoney.com) -- European stocks climbed Monday, lifted by the U.S. government's plan to rescue beleaguered financial giant Citigroup.
On Sunday, the United States announced a massive aid package for Citi, the latest government effort to stabilize the ailing financial sector.
Bank stocks in Europe rose, led by Citigroup, which surged 35% in Frankfurt trading.
Britain's FTSE 100 was up 5% in morning trading. The CAC-40 in France was up 4.5% and Germany's DAX was up 3.7%.
U.S. stock futures, which offer an indication of how Wall Street will open when trading begins in New York, were pointing to a positive start.
Under the Citigroup rescue plan, the government will guarantee losses on more than $300 billion in troubled assets and make a fresh $20 billion injection in the company.
The move comes after an alarming drop in the company's stock. At the close of U.S. trading on Friday, Citigroup (C, Fortune 500) shares had dipped below $4 a share, and were down 87% for the year.
In Asia, major markets finished mixed. Japan's benchmark Nikkei 225 index finished the session 2.7% higher while the Hang Seng index in Hong Kong fell 1.6%.
U.S. stocks rallied Friday, with the Dow industrials closing up 494 points on reports that President-elect Barack Obama will nominate New York Federal Bank President Timothy Geithner as his new Treasury secretary.
Two sources close to the transition told CNN on Friday that Geithner is "on track" to be offered the post. Obama is expected to formally announce his entire economic advisory team at a press conference late Monday morning.
Geithner is a well-regarded figure from Wall Street to Washington and he could help shepherd additional relief for troubled banks through a skeptical Congress.
The Dow ended Friday's session up 6.5%. The Standard & Poor's 500 index gained 6.3% and the Nasdaq composite climbed 5.2%. 
-
Business owners are growing their sales by swapping everything from boats to lingerie. More -
President Obama's plan would give small banks access to capital, but they are wary of TARP traps. More -
Minimum wage to $20 an hour. That's what Sally Delk hopes for with a job at the nuclear power plant. More -
Charlotte Street was the epicenter of urban blight. No longer. Now Bimmers and boats fill driveways. More -
Ex-convicts like Gregory Headley are 'at the back of the line' in the struggle to find work. More
