Debt crisis: Short selling ban helps boost some bank shares
Published 12/08/2011 | 11:13
European stock markets gained today after a ban on short-selling financial shares encouraged investors to buy up banking shares, although there are still concerns about the French banking sector.
Short selling involves betting that the value of a share will fall.
France, Italy, Spain and Belgium have all imposed the ban after rumours about financial institutions, including their exposure to Italian government debt, knocked a third of the value off some of their shares.
While the move seems to have given temporary relief to jittery markets, ongoing concerns about eurozone debt problems and a worldwide recession still remain.
International stock markets have lost 10pc of their value so far this month.
The FTSEurofirst 300 index of top European shares gained 1.4pc this morning having fallen 1pc in earlier trade.
The STOXX Europe 600 Banks index added over 2pc.
Shares in French banks BNP Paribas were up over 1p but Societe Generale stocks were more volatile.
Societe has been hit most by the sell-off with its shares down 33pc so far this month on Government debt exposure.