European stocks continued their recovery for the second consecutive session today, Friday, as the measures taken by the United States and Europe to support banks calmed fears of an imminent collapse, but the European index is on its way to record a decline for the second week in a row.
The Stoxx 600 index rose 0.8%, by 08:05 GMT, as the banking index increased 1.3%, after a $ 30 billion rescue plan presented by large US banks to the besieged First Republic, according to Reuters.
The package came less than a day after Swiss bank Credit Suisse secured an emergency loan from the central bank of up to $54 billion to support liquidity.
Credit Suisse shares rose 1.8% in early trading, after jumping 19% on Thursday.
The Spanish and Italian indexes, which are dominated by banks, rose 0.7% and 1.0%, respectively, but they are on their way to incur large weekly losses.
The Stoxx 600 index ended Thursday, up 1.2%, after volatile transactions, as the rescue package obtained by “Credit Suisse” dispelled concerns about the European Central Bank raising interest rates by 50 basis points.
