Frankfurt - Luxury carmaker Porsche released some of the price pressure on Volkswagen stock Wednesday, announcing in Stuttgart it would unwind futures contracts on up to 5 per cent of Volkswagen AG voting stock.

At the same time it affirmed its ultimate intention to buy "up to 75 per cent" of Volkswagen, Europe's biggest carmaker.

The extraordinary tripling in the Volkswagen price in the space of Monday and Tuesday caught out many hedge funds who were forced to pay vast amounts for the scarce stock to settle short-selling deals.

Frankfurt - European stocks stormed ahead Wednesday on hopes of lower interest rates.

Amid expectations of the US Federal Reserve delivering another hefty cut in borrowing costs Wednesday, Europe's blue-chip Stoxx 50 climbed 7.8 per cent to 2222 after chalking up even bigger gains during the day.

The positive mood was reflected across national bourses with shares in London gaining more than 6 per cent and Paris jumping more than 7 per cent as the afternoon session drew to a close. Stocks in Zurich were up 5.40 per cent.

Paris - Invigorated by a very strong rebound on Wall Street overnight, French shares were up sharply in early Wednesday trading on the Paris Bourse.

Bangkok - Thai shares started strong Wednesday but ended down 3.49 per cent as investors reacted to declines on other bourses in Asia and Europe.

Frankfurt - Volkswagen AG shares dropped sharply Wednesday after the key shareholder in Europe's biggest carmaker said it was moving to try to stabilize VW's stock, which soared earlier this week.

In a statement, luxury sports carmaker Porsche AG said that, depending on the state of the market, it planned "to settle hedging transactions in the amount of up to 5 per cent of ordinary Volkswagen shares."

"This may result in an increase in the liquidity of the Volkswagen ordinary shares," Porsche said.

Hong Kong - Hong Kong stocks end another day of volatile trading just in positive ground at 0.8 per cent higher Wednesday.

The blue-chip index closed 105 points up at 12,707 on a day which saw the index rise and fall like a rollercoaster.

At one point the index reached over 13,200 only to dip down below 12,400 and then climb back up again. Turnover was 59.2 billion Hong Kong dollars (7.6 billion US dollars).

This week has seen some of the most volatile trading in the last 10 years on the Hong Kong stock market with the index losing a huge 12.7 per cent Monday only to rebound 14.35 per cent Tuesday.