European shares rise as banks rally before stress test result
(Adds details, updates prices)
* Pan-European STOXX 600 index gains 0.7 pct
* Banks biggest sectoral gainer led by Monte Paschi, Barclays
* Kering, Generali surge on well-received updates
By Atul Prakash and Danilo Masoni
LONDON/MILAN, July 29 (Reuters) - European shares rose on Friday helped by some encouraging company updates, with Kering gaining after its fashion brand Gucci recorded strong sales.
Financial services were in demand, with the STOXX Europe 600 Banks index topping sectoral gainers with a rise of 2.1 percent before the the release later in the day of the results of Europe-wide stress tests.
Italy's Monte dei Paschi di Siena, which is expected to be among banks that fare worst in the tests, rose 6.3 percent amid some optimim over a rescue plan that includes a 5 billion-euro capital increase.
"The key issue for market participants is whether investment banks will manage to guarantee the whole amount. Given a number of statements over the past few hours, it seems they will," LC Macro Chief Economist Lorenzo Codogno said. Continuación...