London: European shares rose in a tentative recovery on Friday following sharp falls in the previous session after the Group of 20 economies pledged action to help financial markets and increase the flexibility of the euro zone’s rescue fund.
French banking stocks, which have exposure to euro zone sovereign debt, were amongst the top risers, with Societe Generale , Credit Agricole and BNP Paribas up 1.9 to 3.9%.
The G-20 said necessary steps would be taken to help calm and global financial system, however, little detail was given on how the rescue fund might be changed and what kind of action the group would implement to help the markets.
“It is a relief rally and investors are just picking up some stocks on the cheap,” Mark Priest, senior trader at ETX Capital said. “I do not see how everything has changed overnight.
“Kick starting the economy is easier said than done and it will take a lot more than what has been put on the table.”
By 0707 GMT, the pan-European FTSEurofirst 300 index of top shares was up 0.9 percent at 882.93 points, after dropping 4.7% to a 26-month low on Thursday on worries about global growth.