European shares close higher; banks gain

LONDON, July 21 (BestGrowthStock) – European shares made significant
gains for the first time in more than a week on Wednesday, with
banks rising after strong results from U.S. financials and on
optimism that stress tests will boost the sector’s outlook.

The FTSEurofirst 300 (.FTEU3: ) index of top European shares
rose 1.1 percent to close provisionally at 1,017.48 points,
though it had been up more than 2 percent earlier.

European banks to gain included BNP Paribas (BNPP.PA: ),
Barclays (BARC.L: ), Credit Suisse (CSGN.VX: ), HSBC (HSBA.L: ) and
UBS (UBSN.VX: ), up between 1.5 and 2.4 percent.

U.S. bank Morgan Stanley (MS.N: ) (Read more about the money market today. ) reported
higher-than-expected second-quarter profit (Read more your timing to make a profit.) despite weak industry
trends, sending its shares up more than 8 percent.
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“Good corporate earnings numbers from the banking sector
helped,” said Bob Parker, vice chairman of asset management at
Credit Suisse. “And we bounced off good technical resistance
points, having fallen earlier in the week.”

The stress tests, the results of which are due to be
released on Friday, will be rigorous and have credibility, said
Parker, adding: “Most will pass, and for those that don’t there
will be a plan to deal with them.”

Investing Analysis

(Reporting by Brian Gorman)

European shares close higher; banks gain