European shares turn positive

14/09/11 15:23 CET

economy

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Shares rose after the head of the European Commission Jose Manuel Barroso said it would soon present options for the introduction of euro area bonds.

His comments helped reverse earlier losses for the single currency and European stocks triggered by

the downgrade of two big French banks’ credit ratings.

London rose over one and a half percent, nervousness though persists in the markets.

“Massive volatility, huge concerns, you know you can just lose so much money so quickly that investors and market players are highly nervous of these markets.It’s just very very difficult to either invest or trade in these highly volatile markets,” said Louise Cooper of BGC Partners.

The euro stabilised showing solid gains against the dollar and the yen. Banks also pared losses, with the European sector index up just over half a percent.

President Nicolas Sarkozy and German Chancellor Angela Merkel are due to talk with Greek Prime Minister George Papandreou this afternoon.

More about: Banking, Economic crisis, European markets, Eurozone in crisis, Societe Generale

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