European shares extend rally as debt fears ease

PARIS, May 28 (BestGrowthStock) – European stocks rose in early
trade on Friday, adding to a brisk two-day recovery rally as
investors continued to scoop up beaten-down shares while fears
over the euro zone debt crisis receded.

At 0705 GMT, the FTSEurofirst 300 (.FTEU3: ) index of top
European shares was up 0.6 percent at a 1-1/2 week high of
1,006.33 points, after surging 5.3 percent over the past two
sessions.

Banks extended their rebound, with UniCredit (CRDI.MI: ),
Societe Generale (SOGN.PA: ) and Banco Santander (SAN.MC: ) up
1.0-1.4 percent.

But Alexandre Le Drogoff, technical analyst at Aurel BGC,
warned that investors might be trying to “catch a falling
knife”.

“This recovery rally could soon hit resistance on the
upside. This week’s low point wasn’t the capitulation point, so
the risk is still on the downside.”

Investment Research

(Reporting by Blaise Robinson)

European shares extend rally as debt fears ease