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Banks lead European shares higher after EBA review
2012年10月4日 / 早上8点23分 / 5 年前

Banks lead European shares higher after EBA review

* FTSEurofirst 300 up 0.2 pct, Euro STOXX 50 rises 0.4 pct
    * Banks best-performing sector
    * Traders relieved over watchdog's update on banks' capital
    * Technical patterns supporting European markets - traders

    By Sudip Kar-Gupta
    LONDON, Oct 4 (Reuters) - European shares rose on Thursday,
with banks the best performing sector on relief that an update
from regulators on the health of the industry painted a less
gloomy picture than some had feared.
    The market was also underpinned by technical factors that
were inhibiting any major pull-back over worries about the euro
zone debt crisis.
    The FTSEurofirst 300 index rose 0.2 percent to
1,103.11 points, recovering from two consecutive days of slight
losses. The euro zone Euro STOXX 50 index advanced
by 0.4 percent to 2,502.47 points.
    The STOXX European bank index rose 0.7 percent, 
after traders expressed relief over the update from the European
Banking Authority.
    The EBA reported late on Wednesday that EU banks had
collectively raised 205 billion euros ($264.5 billion) in new
capital to help them fight the effects of the debt crisis.
    It said four lenders had failed: Italy's Monte dei Paschi
 ; Cyprus' Marfin Popular Bank and Bank of Cyprus; and
Slovenia's NKBM.
    "The banks are up on some relief over their capital
requirements. It's only some of the smaller banks that didn't
pass the test," said Adrian Slack, head of equities at Bastion
Capital.
    Slack said patterns on the Euro STOXX 50 were showing that
the index was in an "upward trend channel" - often used by
technical traders to indicate that the market could advance
further.
    "We seem to be in a positive trend at the moment, and until
any of that breaks, the support should remain," he said.
    Slack saw the Euro STOXX 50 index on an upward trend from
2,464 points onwards, though some traders might sell if it
reached 2,520.
    
    SPAIN DEBT CRISIS WEIGHS
    Global share markets have rallied since late July, when
central banks began to pledge new stimulus measures to fight off
the effects of the economic slowdown and Europe's debt crisis.
    The FTSEurofirst 300 has risen around 8 percent since the
end of July, when European Central Bank head Mario Draghi
promised to do whatever it took to protect the euro.
    But uncertainty over the timing over a possible sovereign
bailout for Spain has capped gains.
    Some investors expect Draghi may provide hints about Spain's
likely move regarding an international bailout at the ECB's rate
meeting on Thursday, which is expected to leave rates on hold.
    Spain must first formally request aid before the ECB can
activate a bond-buying programme that is aimed at lowering the
borrowing costs of debt-ridden states.
    "There's just a little bit of optimism that there could be
some more easing coming from the ECB," said Berkeley Futures
associate director Richard Griffiths.
    Griffiths said his firm had bought Euro STOXX futures
contracts, which were up 0.4 percent, but might look to
sell these later on Thursday.
    Traders said central bank stimulus measures had pushed
benchmark bond yields to such low levels, that investors were
still favouring equities over bonds or cash at present, due to
the greater yields on offer via equity dividends.
    "Whilst the economy doesn't look great, people are looking
at the bigger picture and expecting that six months down the
road, Euroland is going to sort itself out," said McLaren
Securities managing director Terry Torrison.
    "The demand for equities is still there. There's no value
being in bonds at the moment. Any time we have a pullback, the
buyers come back out of the woodwork."

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