Shares in markets around the world jumped yesterday as investors welcomed a US Government plan to inject up to $200bn (£114bn) into Freddie Mac and Fannie Mae, which was disclosed to the chief executives of the two mortgage giants, and as a fait accompli, only on Friday.

Investors were reacting to a Treasury announcement on Sunday that the Government was seizing control of Freddie and Fannie, the mortgage groups that underpin the entire American housing market, and was prepared to inject up to $100bn into each.

Furthermore, the Government has offered to lend each institution billions of dollars on preferential terms and said that it would help to boost liquidity in the home loan market by buying mortgage-backed securities.

The Times, Daily Telegraph