Date: Monday 28 Jun 2010
Europe’s main markets closed with good gains despite an unconvincing start to the trading session on Wall Investors continued to consider the implications of last weekend’s Group of 20 meeting.
The leaders of the industrialised World left the latest summit with a vow to halve government debt by 2013 and to force banks to hold significantly more capital. Banks will have to hold enough capital to withstand another Lehman Brothers-style collapse without government aid, the meeting in Toronto decided.
In a communiqué the G20 said, "The amount of capital will be significantly higher, and the quality of capital significantly improved, when the new rules are fully implemented. This will enable banks to withstand, without government support, stresses of the magnitude associated with the recent financial crisis."
Banking shares were largely higher, with BNP Paribas, Deutsche Bank and Commerzbank all in positive territory.
Elsewhere in the sector, Standard Chartered's comment that income in the first six months is expected to be on a par with the same period of last year knocked its share price.
Carmakers were also going well with Peugeot, Renault, Volkswagen and BMW in demand.
Across the markets, the Dax in Frankfurt closed 87 points higher at 6,157, with the Cac in Paris up 57 points at 3,576. The Swiss market added 36 points to 6,311.
Leading French daily Le Monde looks set to be taken over by a trio of business tycoons led by Lazard banker Matthieu Pigasse, according to the BBC.
The massive clean-up operation in the Gulf of Mexico continues and has now cost BP$2.65bn (£1.75bn). The oil giant is stopping almost 23,000 barrels of oil from leaking into the sea while reports at the weekend said the relief well to cap the leak completely could be in place earlier than expected. 
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