European shares rose in early trade today, building on gains in the previous session, after Wall Street rose sharply, boosted by hopes that an agreement on the budget will avert a US default, and strong company results.
By 0707 GMT, the FTSEurofirst 300 index of top European shares was up 0.5 per cent at 1,082.28 points, after rising 0.8 per cent in the previous session.
Stocks rose across the board. The STOXX Europe 600 Banking Index rose 1.4 per cent, with the heavyweight sector gaining for a second day after sharp falls in the wake of stress tests.
"It's important that there are slightly more positive tones coming out of Capitol Hill, at least averting an immediate issue with their debt ceiling," said Lothar Mentel, chief investment officer at Octopus Investments, which manages $4 billion.
"We're within the trading range, driven by good and bad news. The US earnings season will be a positive catalyst and gives us more perspective, compared to the worries and concerns about the euro zone debt crisis. I don't expect markets to break out of the trading range."
Blockbuster sales of the iPhone and strong Asian business again helped Apple Inc crush Wall Street's expectations, driving its shares up more than 7 per cent to a record high. European tech stocks advanced 1.2 per cent.
Reuters
