Shares boosted by Chinese announcement

The FTSE has gained today, in the wake of the Chinese government''s announcement of a £370 billion economic stimulus programme.

At the close, the index had gained 0.89 per cent.

Overnight, the Asian bourses had also responded positively to the change, with the Hang Seng closing 3.52 per cent up and the Nikkei 225 5.81 per cent.

The Dow Jones in New York also gained 200 points on opening, before falling back again on general economic concerns regarding the ongoing worldwide downturn.

Head of the International Monetary Fund, Dominique Strauss-Kahn, said that the Chinese move was "huge".

Reuters reports him as saying: "It will have an influence not only on the world economy in supporting demand but also a lot of influence on the Chinese economy itself, and I think it is good news for correcting imbalances."

For its part, China''s state council has promised to implement the measures "swiftly and forcefully".