Receding debt fears push European shares higher

LONDON (BestGrowthStock) – European shares rose on Tuesday, snapping two consecutive days of falls as sovereign debt fears waned after Greece received funds from the European Union to repay its immediate debt.

Banks featured among the best performers with Banco Santander (SAN.MC: ), BNP Paribas (BNPP.PA: ), UBS (UBSN.VX: ) and Societe Generale (SOGN.PA: ) up 2.1 percent to 6.1 percent.

The pan-European FTSEurofirst 300 (.FTEU3: ) index of top shares closed up 1.34 percent at 1,026.64 points, but was still down 1.8 percent for the year.

Greece received a 14.5 billion euro ($18 billion) loan from the European Union on Tuesday to repay its immediate debt.

“It is time for a rebound in the absence of any bad news,” said Giuseppe-Guido Amato, strategist at Lang & Schwarz in Frankfurt. “But it’s wait and see on what the final decision will be on the rescue package.”

Sentiment was lifted earlier on in the session after euro zone finance ministers said late Monday they were hatching out the details of the 750 billion euro rescue plan designed to calm market fears of a wave of Greek-style debt crises.

Energy stocks were lifted as crude prices recovered from a five-month low. BP (BP.L: ), BG Group (BG.L: ), Royal Dutch Shell (RDSa.L: ) and Total (TOTF.PA: ) gained 0.8 percent to 2.1 percent.

BRITISH LAND GAINS

British Land (BLND.L: ) gained 4.3 percent after the property group beat forecasts and posted its first full-year net asset value rise since 2007.

ICAP (IAP.L: ) rose 5 percent after Panmure Gordon upgraded its recommendation and estimates on the world’s biggest inter-dealer broker ahead of full-year results due on Wednesday.

Hedge-fund firm Man Group (EMG.L: ) soared 9.1 percent recovering some of the deep losses sustained on Monday after it announced it had agreed to buy rival GLG Partners (GLG.N: ).

On the downside, Prudential (PRU.L: ) dipped 0.8 percent after the insurer’s $21 billion cash call and charm offensive to put its takeover of AIG’s (AIG.N: ) Asian unit back on track got a mixed response from the market.

Across Europe, the FTSE 100 (.FTSE: ) index rose 0.9 percent, Germany’s DAX (.GDAXI: ) gained 1.5 percent and France’s CAC 40 (.FCHI: ) was up 2.1 percent.

Euro zone inflation rose year-on-year as expected in April, and British consumer prices unexpectedly jumped to a 17-month high on rises in tax on alcohol and tobacco, and higher prices for food and women’s clothing.

ZEW economist Michael Schroeder said the euro zone rescue package would weigh on medium-term growth in Germany as budget cuts reduced demand.

Earlier, the ZEW Institute reported that its May German economic sentiment index fell more than expected in May.

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(Reporting by Joanne Frearson; editing by Elaine Hardcastle)

Receding debt fears push European shares higher