Germany's Steinbrueck delighted by reaction to rescue

By Erik Kirschbaum

BERLIN (Reuters) - German Finance Minister Peer Steinbrueck said on Monday he was delighted with the financial markets' reaction after Britain, Germany, France and other European countries announced major bank rescue plans.

"The reaction is what we imagined it would be and it's what we hoped it would be," Steinbrueck said in an interview with ZDF television.

"The movements in the (market) indices have been just delightful -- and one should be allowed to say that out loud," he added. "We should acknowledge that here in Germany instead of getting caught up with the idea that 'everything is so awful.'"

"It shows that the measures taken are having an impact -- not only in Germany, but also in other countries. Now we've got to be rigid about implementing what's been agreed."

"We're in love with the success," a visibly pleased Steinbrueck added.

The world bet solidly on recapitalizing ailing banks as the fastest way out of the financial crisis, sending stock markets soaring after their worst week in history.

U.S. stocks rose more than 11 percent on Monday, reversing direction after the Dow Jones industrial average fell 18 percent last week in a climate of panic and uncertainty as credit markets froze and major economies headed toward recession.

European shares soared 10 percent -- their biggest one-day percentage advance on record -- as investors cheered action taken by governments and central banks to revive credit markets and bail out banks.  Continued...