European shares get boost from Bank of America earnings

LONDON, July 21, 2008 (AFP) – European stock exchanges forged ahead Monday, powered by news of second-quarter profit at Bank of America that reassured investors about the health of the US financial sector. In London the FTSE 100 index gained 0.52 percent to close at 5,404.30 points, while in Paris the CAC 40 rose 0.65 percent to reach 4,327.14. The Frankfurt Dax climbed 0.66 percent to end the day at 6,424.84.

The Euro Stoxx 50 index of leading eurozone companies rose 0.37 percent to 3,333.92.
On Wall Street shares also got a Bank of America bounce at the opening.

But they later fell into negative territory on concern over higher oil prices, which rallied on news of stormy weather that may threaten energy facilities in the US Gulf of Mexico and after fruitless talks between the United States and crude producer Iran.

The Dow Jones Industrial Average was down 0.18 percent at mid-day at 11,476.13 while the tech-heavy Nasdaq had lost 0.30 percent to reach 2,275.83.

In Europe better-than-expected results from Bank of America, which followed earnings reports seen as generally positive last week from other US banks, notably Wells Fargo, JPMorgan Chase and Citigroup, lifted market sentiment.