European shares rose on Wednesday, recouping some of the sharp losses in the previous losses, as investors picked up battered bank stocks, while strong earnings news lifted Randgold Resources and Next. The market also extended gains after better-than-expected private sector employment data in the United States, seen as a precursor to Friday's non-farm payrolls, lifted some hopes that growth was improving in the world's largest economy.
UniCredit jumped 7.3 percent to become one of the best performer on the FTSEurofirst 300 after a 12.4 percent drop in the previous session. The pan-European FTSEurofirst 300 index of top shares provisionally closed up 1.1 percent at 972.02 points following a 3.4 percent drop on Tuesday after a Greek plan to call a referendum on its rescue package stunned the market.
"It is a relief rally," Mike Lenhoff, equity strategist at Brewin Dolphin, said. "Good news has been coming out of the United States with better-than-expected ADP figure, but the eurozone crisis is still a burden for the markets." "There is still a banking crisis going on that puts the global financial system and economy at risk. We are still cautious and geared towards defensive plays and underweight financials."
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