European shares edge up after Ireland bailout plan

EUROPEAN shares rose this morning, after an 85bn euro (£72.1bn) bailout for Ireland helped reassure investors over the country's debt situation, though fears over possible contagion to other euro zone states remained.

By The Newsroom

Published 29th Nov 2010, 08:52 BST

Updated 29th Nov 2010, 08:52 BST

The pan-European FTSEurofirst 300 index of top shares was up 0.3 per cent at 1,090.32 points, rebounding from a 0.6 per cent drop in the previous session.

EU finance ministers yesterday endorsed the bailout package to help Dublin cover bad bank debts and bridge a huge budget deficit, and outlined a permanent system to resolve the euro zone debt crisis in which investors could share the cost of any future default.

"What is required is... an increase in the size of the European Financial Stability Fund. Investors are worried that what is left in the EFSF isn't big enough if Spain had a problem," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin.

Banks were among the main risers, with BNP Paribas, Barclays and Deutsche Bank up 1 to 1.3 per cent.