European shares advance as Portugal rebounds

viernes 11 de julio de 2014 07:34 GYT

* FTSEurofirst 300 up 0.2 pct

* Portugal's top index rallies 1 percent after Thursday's slump

* BES down 2.6 pct after update but not seen affecting other banks

* FTSEurofirst set for worst weekly fall since April

By Francesco Canepa and Alistair Smout

LONDON/EDINBURGH, July 11 (Reuters) - European shares rose on Friday as banks and southern European shares rallied once investors decided concern over Portugal's biggest listed bank was unlikely to spread.

Doubts about the financial health of the family who controls the bank, Banco Espirito Santo, had pulled Portugal's PSI share index to a nine-month low on Thursday. The index had rebounded 1 percent by 1109 GMT on Friday.

BES said late on Thursday losses associated with the founding family would not affect the bank. That calmed investor worries about a chain reaction hitting other banks, especially in the euro zone's periphery.

The fall in the previous session came after shares and bonds of Espirito Santo Financial Group (ESFG), the chief shareholder in BES, were suspended over "material difficulties" at parent firm ESI.   Continuación...