In Europe: European shares turn flat, led by banks, periphery

21 June 2012


“Markets relieved after the country (Spain) raised over two billion euros at a debt auction, albeit with a sharp rise in borrowing costs.”

European shares turned flat on Thursday in technical buying led by¬†euro zone banks, after Spain’s latest debt auction met good demand.

The euro zone’s blue chip Euro STOXX 50 index traded 0.6 percent higher at 2,220.73 points, after crossing its 50-day moving average of 2,210.32 for the first time since early March.

The FTSEurofirst 300 index of top European shares was flat at 1.014.33 points at 1211 GMT after falling to a low of 1,006.10 earlier in the session.

Spain’s IBEX and Italy’s¬†FTSE MIB led regional indicies higher, up 1.2 percent and 1.4 percent, respectively, while the Euro STOXX Banks index was up 1.9 percent.

Spanish government bond yields fell further on Thursday with markets relieved after the country raised over two billion euros at a debt auction, albeit with a sharp rise in borrowing costs.

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