European shares rise sharply also buoyed by Fed action (Reuters) (12-03-2008)

LONDON, March 12 (Reuters) - European shares rallied on opening in Wednesday’s session, led by financials after Tuesday's joint central bank effort to unfreeze the credit markets.

Among banks, UBS, the largest casualty of the credit crunch among the major European banks, shot up 3.4 percent, helping the broader market rise, while rival Credit Suisse gained 3.8 percent and Royal Bank of Scotland rose 3.1 percent. Shares in France's Societe Gιnιrale rose 3.2 percent. BNP Paribas shares were up 2.2 percent. La Tribune newspaper reported BNP Paribas could be preparing to make an offer for SocGen as early as May, but the bank refused to comment.

Belgian-Dutch group Fortis gained 2.1 percent after Belgian daily De Standaard said it was in talk with shareholder China's Ping An Insurance over a deal to boost its solvency.

Mining shares were also up, as investor fears over global demand for commodities eased. Rio Tinto rose 3.4 percent, while BHP Billiton gained 3.1 percent.

The FTSEurofirst 300, which continues to be down about 15 percent so far this year rose by more than 2.5 percent on Tuesday after the announcement of the coordinated central bank action. The market, however, needs more evidence of stability before a rally can be sustained.

Source: Reuters