Optimism on banks helps lifts European shares
April 2nd, 2008 | by admin |LONDON, April 2 (Reuters) - European stocks rose onWednesday as banks rallied for a second session on hopes that aflurry of writedowns could be coming to an end, which offset theimpact of Federal Reserve comments that a recession waspossible.
The FTSEurofirst 300 index unofficially closed up1.1 percent at 1,316.13, its highest close in five weeks,despite comments from Federal Reserve Chairman Ben Bernanke thatthe U.S. economy could face a mild recession.
Rather than fuelling concerns about the fallout from thecredit crisis, a $19 billion writedown by Swiss bank UBS(UBSN.VX: Quote, Profile, Research) in the previous session raised hopes that banks wereaggressively cleaning up their books.
This made banks the top performers, with Commerzbank(CBKG.DE: Quote, Profile, Research) up 6.1 percent, UBS (UBSN.VX: Quote, Profile, Research) up 4.9 percent andCredit Suisse up 5.8 (CSGN.VX: Quote, Profile, Research) percent.
Heavyweight oil stocks also gained along with crude pricesafter weekly U.S. inventory report showed a larger-than-expectedrise in crude stocks. BP (BP.L: Quote, Profile, Research) and Total (TOTF.PA: Quote, Profile, Research) both added1.7 percent.
Among gainers, Spain’s Sacyr Vallehermoso (SVO.MC: Quote, Profile, Research) rose 5.2percent after it escaped having to make a forced $12.5 billiontakeover bid for Eiffage (FOUG.PA: Quote, Profile, Research), making a possible sale ofits stake in the French public works firm easier.
