European shares hit 1-week high on summit surprise


30/06/2012 07:13 AST  Reuters

European shares jumped to one-week highs on Friday after euro zone leaders agreed to take action to bring down Italy's and Spain's borrowing costs, surprising a market that had been primed for disappointment from their two-day summit.

The FTSEurofirst 300 rose 1.4 percent to 1,009.20, after falling 0.5 percent in the previous session, taking it back up to levels last seen on June 22.

Euro zone banks, which have a big exposure to sovereign debt, put in a strong showing, rising 3.9 percent. The market has had a torrid few days, dropping nearly 3 percent on expectations the summit - the 20th time EU leaders have met to try to resolve the debt crisis since it began in Greece in early 2010 - would amount to little.

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