Banks Lead European Stocks Higher

By TOBY ANDERSON LONDON—European stocks rose Friday, with banks leading the gains as investors breathed a sigh of relief that euro-zone countries had managed to agree on a second bailout package for Greece. London's FTSE 100 index had <a href="http://www.jerseys2011.com/products/Soccer-Jerseys-21/Chelsea-626/"><strong>Cheap Chelsea Jerseys 2011</strong></a> risen 0.7% to 5942.45, Frankfurt's DAX index was 0.5% higher at 7327.83, and Paris's CAC-40 was up 0.9% at 3850.85. The euro-zone leaders' package for Greece amounts to €109 billion ( billion) in aid, including official loans and contributions from the private sector, and takes steps to contain the possible knock-on effects to other weak economies in the 17-nation bloc from Greece's debt burden. Further details on the bailout package are expected, however, and they could yet influence market direction. "Investors will be eagerly waiting for the details to be disclosed ... in order to scrutinize the deal and assess its sustainability, as there is some sentiment in the market indicating the <a href="http://www.premiernfljersey.com/products/NHL-Jerseys-20/Philadelphia-Flyers-608/"><strong>Cheap Flyers Jerseys 2011</strong></a> reduction in Greek debt isn't sufficient," said Jordan Lambert, a trader at Spreadex. Banks have responded most positively to the news so far, as the plan to ease Greece's debt burden was aimed at preventing further regional contagion. The Stoxx 600 index for the banking sector gained 1.7% at 270.36. Crédit Agricole jumped 3.2%, BNP Paribas climbed 2.7%, and Deutsche Bank 1%. Still, despite optimism over the Greece bailout package, it's unlikely equities will climb too much further given Friday's weakness in German business confidence and as U.S. debt ceiling talks remain stalled. The German research institute Ifo said Friday that German business confidence fell in July to a nine month low, with the Ifo index falling to 112.9, from 114.5, and missing economists' <a href="http://www.cheapbearsjersey.com/products/NFL-Jerseys-18/Philadelphia-Eagles-439/"><strong>Cheap Eagles Jerseys 2011</strong></a> forecast of 113.8 for the month. "July's sharp drop in the German Ifo index is another sign that the recovery in the euro zone's largest economy is faltering," said Capital Economics. Similarly, in the U.S. debt ceiling talks, U.S. President Barack Obama had set Friday as the deadline for a resolution. If no consensus is reached "this would certainly give traders the ideal excuse to start booking profits," said Cameron Peacock at IG Markets. In the foreign-exchange markets, the euro on Friday held onto most of its gains made overnight on news of a comprehensive bailout package for Greece. "It seems that European leaders have come up with a set of proposals that demonstrate their strong desire to keep the euro together," said Deutsche Bank. "Whether it ultimately succeeds over the medium-term largely depends on whether the peripheral countries can use the time it allows them to make large internal adjustments, and also on whether the European economy manages to squeeze out enough growth that allows for enough hope that countries can grow out of their problems." The euro was fetching 1.4398 from 1.4434 late Thursday <a href="http://www.casualphorum.com/viewtopic.php?p=1812745#1812745"><strong>######## oakley sunglasses lens sunglasses submit » Internet Marketing ...</strong></a> in New York, and against the yen it was at ¥113.22 from ¥112.98. The dollar was at ¥78.62 from ¥78.30. September Nymex crude-oil futures were up 14 cents at 99.27 a barrel, while the price of spot gold stood at 1,586.50 a troy ounce, down 5 from its close in New York Wednesday.