European stock indices gained limited value on Friday amid further gains in the banking sector, but also pressures from the oil and gas sector, affected by falling oil prices and concerns regarding the U.S. bank bailout plan.
In such circumstances, the London FTSE index was up a modest 0.13 percent, reaching 4,876 points. The Frankfurt DAX index was similarly up by 0.1 percent, reaching 5,668 points.
The biggest winners were recorded in the banking sector, led by French BNP Paribas.
The biggest winners were recorded in the banking sector, led by French BNP Paribas, whose shares strengthened by 3.5 percent after Goldman Sachs raised their target price. Among other members of this sector, shares of British bank Barclays rose by 3.3 percent, French bank Societe Generale by 2.9 percent, and Swiss UBS by 1.7 percent. UBS announced the closure of 2,000 jobs and the winding down of a significant part of its commodities business.
Investor attention is focused on further developments related to the U.S. stimulus package, worth $700 billion and aimed at rescuing banks. The package will be considered later in the day by the U.S. House of Representatives.
“In the short term, the U.S. bailout plan will be the dominant factor for stock markets, and the financial sector will remain in the spotlight,” said LBBW analyst Michael Koehler.
