European shares up 3%

by Richard Kilner

Story link: European shares up 3%

Europe’s shares, weakened in the recent financial turmoil, were eagerly snapped up today after the offer for Bear Stearns by JP Morgan was increased fivefold.

Across the continent stock markets rose in value by around 3%.

Banks enjoyed the best of boosts, with Barclays seeing their shares soar by 11%.

In addition, the situation seems to have been helped by unexpectedly rising sales in the US housing market, the source of the subprime mortgage crisis and credit crunch that has caused so much damage to the financial services industry.

There is some speculation that the rise in sales could be an indication that the trough of the downturn may have been reached and passed.