Reply #49: European stocks up with banks [View All]

http://today.reuters.co.uk/news/articleinvesting.aspx?type=eurMktRpt&storyID=2007-10-31T131207Z_01_L3123833_RTRIDST_0_MARKETS-EUROPE-STOCKS-UPDATE-2-REFILE.XML

PARIS, Oct 31 (Reuters) - European stocks were mostly higher by midday on Wednesday, as a lack of negative surprises in Deutsche Bank's (DBKGn.DE: Quote, Profile , Research) results pleased investors and sent banking stocks higher.

But with the U.S. Federal Reserve widely expected to unveil a rate cut after European markets close, investors remained cautious.

At 1223 GMT, the FTSEurofirst 300 <.FTEU3> index of top European shares was up 0.3 percent at 1,587.04 points.

European banking shares advanced across the board after Deutsche Bank (DBKGn.DE: Quote, Profile , Research) beat its own earlier forecast with a 1.4 billion euro third-quarter pretax profit despite making a loss at its flagship investment banking division.

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Deutsche Bank gained 4.4 percent, while Royal Bank of Scotland (RBS.L: Quote, Profile , Research) added 2 percent and Societe Generale (SOGN.PA: Quote, Profile , Research) surged 2.5 percent.

The DJ Stoxx European banking index <.SX7P> gained 1.5 percent after bearing the brunt of investor worries over a crunch in the credit market in recent months.

The banking index is down 7 percent on the year, going in the other direction to the broad FTSEurofirst 300, which has gained 7 percent.

Around Europe, Germany's DAX index <.GDAXI> was up 0.2 percent, UK's FTSE 100 index .FTSE up 0.2 percent and France's CAC 40 <.FCHI> up 0.3 percent.

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