European shares extend post-Brexit rally led by banks
(ADVISORY- Follow European and UK stock markets in real time on the Reuters Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets)
MILAN, July 1 (Reuters) - European shares rose for a fourth straight session on Friday as concerns over Britain's decision to leave the European Union eased, helped by expectations of more central bank support.
The pan-European STOXX 600 index rose 0.2 percent by 0715 GMT, while the FTSEurofirst 300 added 0.3 percent.
Both indexes however remain below levels reached before the shock UK vote, which triggered worries about political risk in Europe, weighing on peripheral countries and financial stocks .
The bank index rose 1.2 percent, making it the biggest sectoral gainer. Intesa, up 3.7 percent, was the biggest gainer on the FTSEurofirst, while Deutsche Bank and Lloyds Bank were also up sharply.
Investors said the sector was helped by news that the European Commission had authorised an Italian guarantee scheme to provide liquidity to solvent banks in case of need.
A Bloomberg report saying that the European Central Bank was considering loosening the rules for its bond purchases was also seen as a supportive factor. (Reporting by Danilo Masoni)
© Thomson Reuters 2017 All rights reserved.