Markets soar as GM set for bankruptcy

European stock markets have soared upon opening this morning, on a day likely to see one of the largest bankruptcy filings in US history, as General Motors seeks Chapter 11 protection.

The FTSE 100 is powering ahead led by a strong start for the mining sector; the blue chip index has advanced 72.61 points (1.64%) to 4490.55 at 8:30am.

Other major European markets are also well ahead, with Frankfurt's Dax adding 3.16% to 5096.71 and Paris' CAC 40 is 2.43% ahead to 3357.25.

In London, the miners control the top four performances so far, with Vedanta and Rio Tinto up 5.82% to £16.73 and 5.43% to £29.52 respectively.

Xstrata is also doing well, 5.34% higher to 720.50p and Kazakhmys is 5.14% ahead to 726p.

Catering group Compass is the only stock in decline so far, down 0.63% to 354.75p.

In the US, President Obama is today set to announce the bankruptcy of General Motors and launch a $59bn plan to save the auto giant from total collapse.

GM suffered the only significant loss in Friday trading, falling 36.61% to 78 cents. The Dow closed the week 96.53 points higher (1.15%) to 8500.33.

In Japan, the Nikkei 225 opened the week strongly, advancing 155.25 yen (1.63%) on Monday, to 9,677.75. Hong Kong's Hang Seng climbed 661.58 points (3.64%) to 18,832.58.