Stock markets gain, Italy raises over €5bn
EUROPEAN stocks extended their rally on Monday morning after Italy's borrowing costs fell at an auction, helped by hopes of fresh measures from the European Central Bank to fight the euro zone debt crisis.
The FTSEurofirst 300 index of top European shares was up 1.1pc at 1,068.01 points, a level not seen since early April, while the euro zone's blue chip Euro STOXX 50 index was up 1.4pc, at a three-month high of 2.332.93 points.
Italy sold €5.48bn of government bonds in an auction at which yields fell compared with the previous comparable sale.
Spain's IBEX index was up 2.1pc and Italy's FTSE MIB was up 2.7pc.
Earlier markets were buoyed by comments from Eurogroup head Jean-Claude Juncker who indicated that thte European Central Bank and the eurozone's bailout fund, the EFSF, will act to assist Spain.
His comments echoed those of ECB boss Mario Draghi last week.