European stocks climb

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London - Europe's main stock markets climbed at the start of trading on Monday as investors reacted positively to news that Portugal plans a financial rescue of crisis-hit lender Banco Espirito.

London's benchmark FTSE 100 index rose 0.25 percent to 6,696.08 points, Frankfurt's DAX 30 grew 0.13 percent to 9,222.05 points and in Paris the CAC 40 advanced 0.48 percent to 4,222.78 compared with Friday's close.

Portugal will inject 4.4 billion euros (R63 billion) into Banco Espirito Santo (BES), national bank governor Carlos Costa announced late Sunday, amid fears of a catastrophic bank run.

The bank will be split into two entities, with its toxic assets isolated and its healthier assets regrouped in a new Novo Banco, Costa said.

“Slightly supportive for European shares is the announcement that the Bank of Portugal has taken over control of Banco Espirito and submitted a rescue plan for Portugal's second biggest lender, removing uncertainty,” said Markus Huber, senior analyst at brokers Peregrine & Black. - Sapa-AFP



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