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Neighbourly handout helps global markets

MARKETS breathed a sigh of relief yesterday after news of Abu Dhabi’s $10bn (£6bn) lifeline to Dubai. The Dubai stock exchange closed more than 10 per cent higher while the Abu Dhabi market climbed nearly eight per cent.

European and US stock markets also rose. UK banking shares rallied on the news as investors’ worries over their exposure to Dubai receded, and the FTSE 100 index closed up one per cent at 5315.3.

The London Stock Exchange, which is 21 per cent owned by Borse Dubai, a state-owned company, was the biggest riser in London yesterday as fears over a fire sale of the stake receded.

The LSE was up 69p at 763.5p, while shares in Standard Chartered, HSBC and Barclays climbed.