European shares rose in early trade on Monday, following gains on Wall Street and in Asia, and with banks gaining on relief that the vast majority had passed the stress tests.
At 8:05 a.m., the FTSEurofirst 300 index of top European shares was up 0.3 percent at 1,047.36 points, after rising 0.5 percent in the previous session to its highest close since July 14.
Banks gained, following an announcement after the close of markets on Friday that only seven of 91 banks failed stress tests — five small Spanish banks, Germany’s state-rescued Hypo Real Estate and Greece’s ATEbank. No listed bank failed the tests.
BNP Paribas , Barclays and Societe Generale rose between 2.2 and 3.2 percent.
Although some commentators were sceptical of the tests, saying they were not stringent enough, others said they had provided valuable information.
“There was significant disclosure in the stress tests, so it leaves analysts in a position to make up their own mind, ” said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin. “It allows them to distinguish between the vulnerable and the less vulnerable.”
BP rose 2.8 percent after reports it is set to announce the departure of chief executive Tony Hayward, who came under fire for his handling of the massive oil spill in the Gulf of Mexico.
