Euro shares on up again after reassuring words from Angela Merkel
Published 06/10/2011 | 09:23
EURO equities extended the previous day’s strong gains today on hopes the EU will intensify its efforts to support Europe's financial sector.
And latest data raised optimism the US economy might not slip back into recession after all..
At 8.05am, the FTSEurofirst 300 index of top European shares was up 0.6pc at 921.68 points after surging 3.3pc in the previous session.
According to Keith Bowman, equity analyst at Hargreaves Lansdown: "Significant talk of bank recapitalisation is certainly the driving factor behind positive sentiment."
"But there is still a lot of uncertainty. Speed is of the essence and that would make a difference.
‘’If we see another week or so go by without some significant step forward, that is likely to inject nerves back into the markets."
German Chancellor Angela Merkel urged yesterday a quick decision on bank capitalisation in Europe, saying "time is of the essence" and her government was ready to capitalise its banks if needed.
The STOXX Europe 600 banking index rose 1.3 per cent to feature among the top gainers.
But it is still down 33pc this year on concerns about the sector's exposure to debt-stricken countries such as Greece, which could default on its debt obligations.