European shares rise on Spanish bailout talk


22/09/2012 07:00 AST  Reuters

European equities rose on Friday, briefly testing last week's 14-month highs, propelled by gains in banking shares on speculation Spain was moving towards a bailout request, but the uncertain economic outlook could hold back the market.

Euro zone banks rose 2.4 percent, driven by Spain's BBVA and Banco Santander, as Madrid was said to be taking steps to meet conditions for an international rescue, which could pave the way for monetary support from the European Central Bank.

The pan-European FTSEurofirst 300 index provisionally closed at 1,119.46 points, up 0.4 percent on the day and broadly flat over the week, which was marked by soft economic data from the euro zone and China curbing optimism over the impact of stimulus action by central banks.

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