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Oct. 21, 2011, 12:03 p.m. EDT

Europe stocks rise on hopes for crisis plan

Bank shares rally, rebounding from Thursday’s losses

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By Polya Lesova, MarketWatch

LONDON (MarketWatch) — European stocks rose Friday, with banks recovering from the previous session’s steep losses, buoyed by hopes that a plan to tackle the euro-zone debt crisis will be presented soon.

The pan-European Stoxx 600 index /zigman2/quotes/210599654/delayed XX:SXXP +0.20%  rallied 2.5% to end at 238.93. For the week, it posted a gain of 0.2%.

Among banks, shares of UniCredit SpA /zigman2/quotes/200769686/delayed IT:UCG +1.26%  surged 6.6% in Milan, BNP Paribas SA /zigman2/quotes/206351084/delayed FR:BNP +0.31%  rose 6.2% in Paris and Commerzbank AG /zigman2/quotes/200193353/delayed DE:CBK +1.63%  climbed 7.4% in Frankfurt.

Stocks have been on a wild ride this week as optimism over a possible solution to the debt crisis receded and mounted on various media reports.

Click to Play

Merkel races to put EU deal together

A discussion of German Chancellor Angela Merkel's efforts to broker an agreement among European Union leaders over how to tackle the euro-zone debt crisis.

European markets closed sharply lower Thursday following reports that the European Union summit set for Sunday may be delayed — reports subsequently denied.

Sentiment, in turn, was buoyed Friday after French President Nicolas Sarkozy and German Chancellor Angela Merkel issued a joint statement late Thursday saying they will meet Saturday in Brussels to prepare for the Sunday summit of European leaders. They said they planned to provide a response to the debt crisis while also cautioning that an agreement may not be reached on Sunday but rather at a second summit to be held on Wednesday.

“Although there are many proposals floating around on the numerous issues that need resolution, it does appear that progress is being made,” said Michael Derks, chief strategist at FxPro, in a note.

Germany’s DAX 30 index /zigman2/quotes/210597999/delayed DX:DAX +0.15%  rallied 3.6% to 5,970.96, buoyed by the gains for Commerzbank and for Deutsche Bank AG /zigman2/quotes/203042512/composite DB +1.25%   /zigman2/quotes/205584254/delayed DE:DBK +0.12% , shares of which climbed 6.9%.

France’s CAC-40 index /zigman2/quotes/210597958/delayed FR:PX1 -0.06%  rose 2.8% to 3,171.34. Shares of Michelin /zigman2/quotes/203570581/delayed FR:ML +0.42%  climbed 4.8% after HSBC upgraded the tire maker to overweight from neutral.

Shares of Safran SA /zigman2/quotes/206963350/delayed FR:SAF -0.05%  sank 8% in Paris, even as the aerospace firm reported a rise in third-quarter revenue and confirmed its full-year outlook.

London’s FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX +0.03%  advanced 1.9% to 5,488.65, as shares of Weir Group PLC /zigman2/quotes/201865002/delayed UK:WEIR +0.57%  rallied 5.9%.

U.K. banks also posted gains, with Barclays PLC /zigman2/quotes/208409333/delayed UK:BARC +0.23%   /zigman2/quotes/206581728/composite BCS -0.13%  adding almost 6% and Royal Bank of Scotland Group   ending up 3.4%.

In Spain, shares of Banco Santander   /zigman2/quotes/205677933/delayed ES:SAN -0.67%  rose 2.9%. The lender said it will book a gain of $1 billion via a capital increase at its U.S. consumer-finance unit, with the gain to be used to strengthen the group’s balance sheet.

Among other stocks making big moves, Thomas Cook Group PLC  rallied 13.1% in London after the travel firm said it has agreed to amend the terms of bank facilities and has signed a new 100 million-pound ($158 million) loan.

In the energy sector, shares of Statoil ASA   rose 3.1% in Oslo as Lundin Petroleum AB  rallied 9.8% in Stockholm.

Statoil said Friday it has doubled its estimate for oil reserves in the Aldous Major South discovery in the North Sea.

Statoil is the operator and has a 40% interest in the field. Its partners are state-owned Petoro AS with a 30% stake, Det Norske Oljeselskap ASA  with 20% and Lundin with 10%.

Shares of Det Norske Oljeselskap soared almost 54% in Oslo trading.

/zigman2/quotes/210599654/delayed
XX : STOXX
436.33
+0.86 +0.20%
Volume: 0.00
Dec. 9, 2022 10:47a
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/zigman2/quotes/200769686/delayed
IT : Italy: Milan
12.71
+0.16 +1.26%
Volume: 6.54M
Dec. 9, 2022 10:42a
P/E Ratio
14.69
Dividend Yield
4.23%
Market Cap
€25.23 billion
Rev. per Employee
€281,787
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/zigman2/quotes/206351084/delayed
FR : France: Euronext Paris
52.16
+0.16 +0.31%
Volume: 218,482
Dec. 9, 2022 10:47a
P/E Ratio
7.25
Dividend Yield
7.04%
Market Cap
€64.15 billion
Rev. per Employee
€478,459
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/zigman2/quotes/200193353/delayed
DE : Germany: Frankfurt
7.88
+0.13 +1.63%
Volume: 750.00
Dec. 9, 2022 10:12a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€166,016
loading...
/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
14,286.10
+21.54 +0.15%
Volume: 8,416
Dec. 9, 2022 10:47a
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/zigman2/quotes/203042512/composite
US : U.S.: NYSE
$ 10.57
+0.13 +1.25%
Volume: 2.93M
Dec. 8, 2022 4:00p
P/E Ratio
5.65
Dividend Yield
1.99%
Market Cap
$21.62 billion
Rev. per Employee
$445,559
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/zigman2/quotes/205584254/delayed
DE : Germany: Frankfurt
10.03
+0.01 +0.12%
Volume: 2,501
Dec. 9, 2022 10:06a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€417,912
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,643.49
-3.82 -0.06%
Volume: 9,529
Dec. 9, 2022 10:47a
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/zigman2/quotes/203570581/delayed
FR : France: Euronext Paris
26.32
+0.11 +0.42%
Volume: 142,735
Dec. 9, 2022 10:47a
P/E Ratio
11.43
Dividend Yield
4.27%
Market Cap
€18.85 billion
Rev. per Employee
€200,971
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/zigman2/quotes/206963350/delayed
FR : France: Euronext Paris
116.72
-0.06 -0.05%
Volume: 43,630
Dec. 9, 2022 10:47a
P/E Ratio
N/A
Dividend Yield
0.43%
Market Cap
€49.42 billion
Rev. per Employee
€221,963
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,474.77
+2.60 +0.03%
Volume: 59,003
Dec. 9, 2022 9:47a
loading...
/zigman2/quotes/201865002/delayed
UK : U.K.: London
1,690.50 p
+9.50 +0.57%
Volume: 66,269
Dec. 9, 2022 9:47a
P/E Ratio
26.09
Dividend Yield
1.53%
Market Cap
£4.36 billion
Rev. per Employee
£177,480
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/zigman2/quotes/208409333/delayed
UK : U.K.: London
157.16 p
+0.36 +0.23%
Volume: 2.33M
Dec. 9, 2022 9:47a
P/E Ratio
N/A
Dividend Yield
3.98%
Market Cap
£24.98 billion
Rev. per Employee
£297,978
loading...
/zigman2/quotes/206581728/composite
US : U.S.: NYSE
$ 7.75
-0.01 -0.13%
Volume: 4.08M
Dec. 8, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
3.94%
Market Cap
$30.46 billion
Rev. per Employee
$380,831
loading...
/zigman2/quotes/205677933/delayed
ES : Spain: Madrid
2.75
-0.02 -0.67%
Volume: 5.15M
Dec. 9, 2022 10:47a
P/E Ratio
5.25
Dividend Yield
3.23%
Market Cap
€46.89 billion
Rev. per Employee
€426,767
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Polya Lesova is chief of MarketWatch’s London bureau.

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