Good news from the banking sector, the U.S. and China have brought optimism on European stock market

The prices on European stock market rose this morning, wrote Walter Helwich at his blog at Tumblr. This particularly is spotted in the banking sector and came as a result after the good news from the U.S. and Chinese economies, and the message that the Fed will continue to keep a loose monetary policy.

FTSEurofirst index of top 300 European shares at 9.30 am was in plus 0.6 percent to 1,214 points.

London’s FTSE, Paris’s CAC and Frankfurt’s DAX index at 9.30 am were in between plus 0.2 and 0.7 percent.

This morning the most (1.2 percent) increased stock prices in the banking sector, following the better than expected operating results of Societe Generale. Stock prices of the French bank rose for more than 5 percent.

Positive influence on the market had and yesterday’s message from Fed, whose leaders after a two-day meeting said that will continue to buy government and mortgage bonds worth 85 billion dollars a month. This has eliminated the fear that Fed will begin to reduce monetary stimulus programs before the economy stands firmly on the road to recovery.

Investors were encouraged and by the better than expected data on the growth of the U.S. gross domestic product in the second quarter, as well as the strengthening of industrial activity in China.

“Fed confirmation that will continue to keep a loose monetary policy has reassured investors. Data from China is positive, however, for the mining sector could have increased confidence and more investment in the country, “said Tom Robertson, an analyst in the ACCENDO Markets Company.

On the Tokyo stock exchange market Nikkei index rose 2.5 percent to 14,005 points.