European shares recover; banks up, SABMiller falls

LONDON, May 20 (BestGrowthStock) – European shares rose on Thursday
after a sharp sell-off in the previous session, led by banking
stocks rebounding following Wednesday’s falls when Germany
banned naked short sales.

By 0709 GMT, the pan-European FTSEurofirst 300 (.FTEU3: )
index was up 0.5 percent at 1,001.05 points, following a 3
percent drop in the previous session.

Banks featured among the top performers, with Banco
Santander (SAN.MC: ), BNP Paribas (BNPP.PA: ), Barclays (BARC.L: ) and
UniCredit (CRDI.MI: ) rising 1.2 to 1.8 percent.
“Its bargain hunting after yesterday’s falls, but volatility
remains high,” said Will Hedden, sales trader at IG Index. “The
markets did not take to the German ban and I would not expect to
see people pilling in too much as the risks to the downside are
still very strong.”

On the downside, brewer SABMiller (SAB.L: ) fell 4.6 percent.
The group said it expects a recovery in consumer spending only
towards the end of 2010 and reported a 17 percent rise which
narrowly missed consensus forecasts.

Stock Market Analysis

(Reporting by Joanne Frearson)

European shares recover; banks up, SABMiller falls