Central banks help European shares jump for second day
LONDON, June 26 (Reuters) - European shares recorded their biggest two-day gain since April on Wednesday as reassuring central bank comments eased concerns about any imminent tightening in monetary policy.
The FTSEurofirst 300 index provisionally closed up 1.7 percent at 1,14.33 points, building on the previous day's 1.5 percent rise and rebounding after a month-long selloff on concern that U.S. stimulus was set to be wound down, and China was facing a credit crisis.
A pledge by the Chinese central bank overnight to prevent any lasting credit crunch helped rekindle investor appetite at the open, and this was further boosted by an assurance by the European Central Bank that an end to its exceptional monetary policy measures remained distant.
Investors piled into some of the sectors that had suffered the most in the past month and which depend on the health of global financial markets, such as European banks and insurers, up 2.2 percent and 2.1 percent.
"We're trickling a bit of additional money into equities now," said Stephen Walker, head of equities research and market strategy at Ashcourt Rowan, which manages 1.5 billion pounds ($2.31 billion).
"The market pullback has thrown up some opportunities and there has been a few decent entry opportunities."