European shares extend gains to fresh two month peaks
EUROPEAN equities extended gains on Monday, setting fresh two-month peaks, as underweight investors piled in on the first trading day of the second half of 2012, betting that a raft of new measures will help resolve the euro zone crisis.
Spanish and Italian bond yields dropped, reflecting the upbeat sentiment, while an upward revision to the euro zone manufacturing PMI index for June brought a bit more cheer.
The pan-European FTSEurofirst 300 was up 1.1 percent at 1,032.21 points by 0823 GMT.
"It's the new half (year), everybody is underweight banks and high beta and anything that's remotely toxic and that's why all the toxic things are going through the roof," said Justin Haque, pan-Europe equity salesman at Hobart Capital Markets.