Date: Wednesday 26 May 2010
European shares closed with good gains as markets across the world recovered from the recent sell-off.Markets in Asia closed higher, while shares in the US are also posting gains at the time of the European close.
Banks were leading the recovery having been the worst affected by this week's sell-off. Credit Agricole, Deutsche Bank and UBS were among the risers.
Elsewhere in the sector, the European Commission today proposed a levy on banks in an effort to prevent future financial crises. Under the proposals, banks and investment firms would have to pay up-front taxes to cover the costs of future meltdowns.
"The funds would not be used for bailing out or rescuing banks," said a European Commission statement, "but only to ensure that a bank's failure is managed in an orderly way and does not destabilise the financial system."
Meanwhile, regulators in Europe are divided on whether to follow Germany’s unilateral ban on naked short- selling of certain financial instruments, the head of a group of EU regulators said.
The European Union has “at present not decided to go for a ban,” Eddy Wymeersch, chairman of the Committee of European Securities Regulators, told reporters. “An EU ban isn’t on the cards and it isn’t off the cards,” Wymeersch said.
Across the markets, the Dax in Frankfurt closed 88 points higher at 5,758, with the Cac in Paris up 77 points at 3,409. The Swiss market added 76 points to 6,168.
Deutsche Telekom was in demand after JP Morgan upgraded its stance on the German telecoms giant to ‘overweight’ from ‘neutral.’
L'Oreal also gained after the cosmetics company was upgraded to ‘buy’ from ‘neutral’ at UBS.
Troubled oil giant BP is carrying out a series of diagnostic tests to determine whether its preferred “top kill” procedure will stop its broken well spewing oil into the Gulf of Mexico.
Elsewhere, Italy has joined Greece, Portugal and Spain in announcing tough austerity measures to help prop up the country’s public finances. The Cabinet last night approved €24bn in fiscal cuts over the next two years. The plan includes three-year pay freezes for most public workers and health spending cuts.
Government ministers and parliamentarians will see their salaries cut by 10% in 2011. Silvio Berlusconi’s administration tries to slash Italy’s budget deficit to below the European Union threshold of 3% by 2012, from 5.3% in 2009.
Meanwhile, regulators in Europe are divided on whether to follow Germany’s unilateral ban on naked short- selling of certain financial instruments, the head of a group of EU regulators said.
The European Union has “at present not decided to go for a ban,” Eddy Wymeersch, chairman of the Committee of European Securities Regulators, told reporters. “An EU ban isn’t on the cards and it isn’t off the cards,” Wymeersch said.
Across the markets, the Dax in Frankfurt closed 88 points higher at 5,758, with the Cac in Paris up 77 points at 3,409. The Swiss market added 76 points to 6,168.
Deutsche Telekom was in demand after JP Morgan upgraded its stance on the German telecoms giant to ‘overweight’ from ‘neutral.’
L'Oreal also gained after the cosmetics company was upgraded to ‘buy’ from ‘neutral’ at UBS.
Troubled oil giant BP is carrying out a series of diagnostic tests to determine whether its preferred “top kill” procedure will stop its broken well spewing oil into the Gulf of Mexico.Elsewhere, Italy has joined Greece, Portugal and Spain in announcing tough austerity measures to help prop up the country’s public finances. The Cabinet last night approved €24bn in fiscal cuts over the next two years. The plan includes three-year pay freezes for most public workers and health spending cuts.
Government ministers and parliamentarians will see their salaries cut by 10% in 2011. Silvio Berlusconi’s administration tries to slash Italy’s budget deficit to below the European Union threshold of 3% by 2012, from 5.3% in 2009.
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