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| European share markets reverse earlier gains | European share markets reverse earlier gains |
| (40 minutes later) | |
| Leading European share indexes have lost earlier gains of about 2% amid continuing fears over eurozone debt and the health of Europe's banks. | Leading European share indexes have lost earlier gains of about 2% amid continuing fears over eurozone debt and the health of Europe's banks. |
| In early afternoon trade, France's Cac 40 and Germany's Dax indexes were both down about 1.5%, while London's FTSE was 0.8% lower. | |
| French banking shares had been among the biggest gainers, with Societe Generale shares up 8% in morning trade. | French banking shares had been among the biggest gainers, with Societe Generale shares up 8% in morning trade. |
| But in volatile trading, the bank's shares were down 5% by lunchtime. | But in volatile trading, the bank's shares were down 5% by lunchtime. |
| Fears about the financial stability of France and its banks had been a key trigger for Wednesday's steep falls. | 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. | 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. | 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. | 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." | 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. | 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. | 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. |
| He said: "The numbers and details are under discussion. The political choice about how we focus ourselves, for 2012 and 2013, is still a political choice we have to make." | He said: "The numbers and details are under discussion. The political choice about how we focus ourselves, for 2012 and 2013, is still a political choice we have to make." |
| He told parliament that Italy needed to reduce its deficit of about 3.9% of national income this year to closer to 1% next year. | He told parliament that Italy needed to reduce its deficit of about 3.9% of national income this year to closer to 1% next year. |
| Italy's debt is the second highest in the eurozone after Greece at 120% of gross domestic product, but its deficit is among the lowest, meaning its debt is rising at a slower rate. | Italy's debt is the second highest in the eurozone after Greece at 120% of gross domestic product, but its deficit is among the lowest, meaning its debt is rising at a slower rate. |
| 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. | On Wall Street on Wednesday, the Dow Jones Industrial Average lost 520.29 points, or 4.6%, to close at 10,719.48. |