Europe: Shares boosted by banks and commodities

[LONDON] European rose on Friday, rebounding from the previous session's steep losses, with encouraging results from Commerzbank and a rally in oil prices helping banks and commodity-related stocks to regain ground.

The pan-European FTSEurofirst 300 was up 1.4 per cent at 1,212.47, having closed down 3.7 per cent on Thursday, when a slump in banks and resource-related stocks pushed the index to a 2-1/2 year low.

Banks were in favour on Friday, with Commerzbank up 12 per cent after it returned to profit in the fourth quarter as provisions for bad loans fell, allowing it to draw a line under a six-year restructuring by announcing to close its 'bad bank' comprising non-core assets.

In all, the STOXX 600 Banks index rose 2.6 per cent.

The oil and gas sector rose 2.7 per cent after a rally in oil which left crude prices up nearly 4 per cent.

REUTERS