European shares hit highest close since April

LONDON, Sept 13 (BestGrowthStock) – European shares hit their
highest close since April on Monday, as banks surged on relief
that new capital rules were not more demanding, and miners rose
with metals prices as Chinese data prompted optimism.

The FTSEurofirst 300 (.FTEU3: ) index of top European shares
rose 0.7 percent to end provisionally at 1,088.20 points, the
highest close in more than four months.

New capital requirements, known as Basel III, will demand
banks hold top-quality capital totalling 7 percent, against the
present requirement of 2 percent, of their risk-bearing assets
but a long lead-in time eased fears that lenders will have to
rush to raise capital.

Banks to gain included Credit Agricole (CAGR.PA: ), Societe
Generale (SOGN.PA: ) and UniCredit (CRDI.MI: ), up between 2.9 and
5.9 percent.
Apart from the banks, “good numbers out of China, and M&A
kicking off,” were driving the market higher, said Andy Lynch,
fund manager at Schroders. “There are a lot of good reasons out
there.”
(Reporting by Brian Gorman)

European shares hit highest close since April