Europe shares hit highest since April; banks up

LONDON, Sept 13 (BestGrowthStock) – European shares gained on
Monday, with a key index hitting its highest level since April,
led by banks after global regulators eased the burden of the
Basel III rules by giving banks a transition period to comply.

The STOXX Europe 600 banking index (.SX7P: ) gained 1.8
percent, with Societe Generale (SOGN.PA: ), Barclays (BARC.L: ) and
BNP Paribas (BNPP.PA: ) up 2.1 to 4 percent.

Global regulators agreed on Sunday to force banks to more
than triple the amount of top-quality capital they must hold in
reserve but gave the lenders transition periods, extending in
some cases to January 2019 or later, to comply with the rules.
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By 0709 GMT, the pan-European FTSEurofirst 300 (.FTEU3: )
index was 0.8 percent higher at 1,089.22 points — its highest
level since late April.

“Today is going to be quite positive, with the Basel III
news that this is not going to be all negative for banks,” said
Justin Urquhart Stewart, director at Seven Investment
Management. “Then there is the Chinese factory data which is
also seen as a positive.”

Chinese factories ramped up production in August and money
growth easily topped expectations, showing that the economy
remained buoyant despite government efforts to clamp down on
bank lending and property speculation.
(Reporting by Joanne Frearson)

Europe shares hit highest since April; banks up