This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-14487604

The article has changed 15 times. There is an RSS feed of changes available.

Version 2 Version 3
European share markets open higher European share markets reverse earlier gains
(about 1 hour later)
  
European markets have rebounded in early trade after Asian markets steadied overnight. European shares have lost earlier gains amid continuing fears over the eurozone debt crisis and the health of Europe's banks.
In London, the FTSE 100 index was up by 1.85%, Germany's Dax index was 2.2% higher and the Cac 40 in France rose 2.1%. After opening with gains of around 2%, London's FTSE index, Germany's Dax index and France's Cac 40 shed the rises to trade flat.
French banking shares were among the biggest gainers, with Societe Generale shares up 6%. French banking shares had been among the biggest gainers, with Societe Generale shares up 8% in morning trade.
Fears about the financial stability of France and its banks were a key trigger for Wednesday's steep falls. But in volatile trading, the bank's shares were down 8% by lunchtime.
Rumours had swept the market that France was about to lose its AAA credit rating, and that Societe Generale was in line for a government bailout. Fears about the financial stability of France and its banks had been a key trigger for Wednesday's steep falls.
Rumours had swept the market that France was about to lose its AAA credit rating and that Societe Generale was in line for a government bailout.
Denials came from both the French Treasury and Societe Generale, whose chief executive, Frederic Oudea, said the rumours were "absolutely rubbish" in an interview with CNBC television after the market closed.Denials came from both the French Treasury and Societe Generale, whose chief executive, Frederic Oudea, said the rumours were "absolutely rubbish" in an interview with CNBC television after the market closed.
Mr Oudea also spoke to France Info radio. "People are scared," he said, "so the tiniest information touches off irrational fears. To our clients, we have to tell them that these rumours are baseless and that they can have confidence in Societe Generale."Mr Oudea also spoke to France Info radio. "People are scared," he said, "so the tiniest information touches off irrational fears. To our clients, we have to tell them that these rumours are baseless and that they can have confidence in Societe Generale."
The bank has asked the French Market Authorities to investigate the source of the rumours, which left its shares 23% lower at one point during Wednesday's trading.
Some analysts have been saying that many shares have been "oversold", meaning they are now cheap at the price.
Vincent Ganne, chartist at TradingSat, said the market was still too volatile and nervous for many investors: "Have we seen capitulation yet? Has the sell-off reached its paroxysm? It's not clear at this point."
Meanwhile, Italy's finance minister Giulio Tremonti was addressing a special parliamentary session to outline his country's response to the eurozone debt crisis, which is expected to include deficit reduction measures to meet its target of balancing its budget by 2013.
Mr Tremonti said budget cuts next year would be "very strong", but he queried European Central Bank demands for cuts in public sector salaries and labour law reforms to make firing easier.
Earlier on Thursday, Asian shares were mixed, with fears about the European debt crisis still preying on investors' minds.Earlier on Thursday, Asian shares were mixed, with fears about the European debt crisis still preying on investors' minds.
Asian stocks pulled back from initial steep falls, with Japan's Nikkei 225 index recovering from an opening fall of 1.8% to close 0.63% lower.Asian stocks pulled back from initial steep falls, with Japan's Nikkei 225 index recovering from an opening fall of 1.8% to close 0.63% lower.
Hong Kong's Hang Seng was down 1% - again after an earlier, larger fall.Hong Kong's Hang Seng was down 1% - again after an earlier, larger fall.
South Korea's Kospi was up 0.62%, after earlier dropping by nearly 4%. Australia's ASX index also recouped earlier losses.South Korea's Kospi was up 0.62%, after earlier dropping by nearly 4%. Australia's ASX index also recouped earlier losses.
On Wall Street on Wednesday, the Dow Jones Industrial Average lost 520.29 points, or 4.6%, to close at 10,719.48. The index has now risen or fallen by more than 400 points for five trading sessions in a row. On Wall Street on Wednesday, the Dow Jones Industrial Average lost 520.29 points, or 4.6%, to close at 10,719.48.