June 17, 2016 / 11:43 AM / 2 years ago

European shares recover as banks rebound and Greece outperforms

(ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets for site in development. See the bottom of the report for more details) Adds details, updates prices)

* Pan-European STOXX 600 index up more than 1 percent

* Greece outperforms after latest aid for Athens

By Sudip Kar-Gupta

LONDON, June 17 (Reuters) - European shares rose on Friday, with Greek equities among the best performers, led by a rebound in battered bank stocks.

The suspension of campaigning for Britain’s referendum on European Union membership also eased some of the selling pressure markets saw this week. The campaigns halted after a pro-EU British politician, Jo Cox, was killed on Thursday by a man wielding a gun and knife .

The pan-European STOXX 600 and FTSEurofirst 300 indexes both rose around 1.2 percent. They remained on course to end the week with a loss after falling close to four-month lows on Thursday.

Greece’s benchmark ATG equity index outperformed, rising 3.9 percent. Alpha Bank and Eurobank Ergasias surged more than 10 percent after Greece got its latest financial aid from European authorities.

“Greece has seen a bit of a bounce after the Eurogroup granted Greece its latest 7.5 billion euros ($8.4 billion)tranche of funding,” said Markus Huber, trader at City of London Markets Limited.

Britain, the world’s fifth-largest economy, votes on June 23 on whether to leave the EU. Concern that it will quit the EU has hit stock markets this week, driving investors towards safe-haven assets such as gold and German bunds.

Betting odds show a greater probability that Britain will vote to stay in the EU. But recent opinion polls have put the “Leave” camp in the lead.

“The ‘Leave’ camp has been ahead in the polls, but that does not necessarily mean they will win the actual vote. We don’t want to call the result either way, and I would expect the rally today to soon fizzle out at the start of next week,” said Dominic Ryder, senior trader at JNF Capital.

($1 = 0.8883 euros)

Today’s European research round-up

ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). In a real-time, multimedia format from 0600 London time through the 1630 closing bell, it will include the best of our market reporting, Stocks Buzz service, Eikon graphics, Reuters pictures, eye-catching research and market zeitgeist. Breaking news and dramatic market moves will continue to be alerted to all clients and we will continue to provide a short opening story and comprehensive closing reports.

If you have any thoughts, suggestions or feedback on this, please email mike.dolan@thomsonreuters.com.

Mike Dolan, Markets Editor EMEA. (Additional reporting by Danilo Masoni in Milan, editing by Larry King)

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