Debt Crisis: European investors wary but shares up on hopes of deal
Published 10/10/2011 | 11:22
A pledge by the leaders of France and Germany to tackle the region's debt crisis ensured European markets started the week slightly higher today.
While there were few details of the plans to ensure European banks have adequate capital, investors were encouraged by signs of action as the FTSE 100 Index lifted 25.7 points to 5,329.3.
The Dax in Frankfurt and the Cac 40 in Paris were also higher by just under 0.5pc.
Banks experienced a rare session without major swings in their share prices, with Lloyds Banking Group up 0.3pc and Royal Bank of Scotland flat.
The euro also gained while oil prices rose above $84 a barrel.
French President Nicolas Sarkozy and German Chancellor Angela Merkel have vowed that a comprehensive response the crisis will be hammered out by the end of the month, including a plan to recapitalise banks.
Meanwhile, eurozone leaders are considering a delay to an up-coming EU summit set for October 17-18 in a bid to buy more time to come up with a solution to the euro zone's sovereign debt and banking crisis.
It is understood that the meeting could be put back to October 23 and could be held over one day.
European Union president Herman Van Rompuy is in talks with EU governments today regarding alternative dates