European open: Positive reaction to stress test

26th Jul 2010 08:29

European banks are largely higher in the first trading session following the results of the European stress tests.After the close on Friday, EU lenders were given a largely clean bill of health when European banking regulators released the results of their so-called stress test. According to the eagerly anticipated results, 84 out of the tested 91 European banks would be able to cope with future economic blow-ups. Germany's Hyper Real Estate, Greece's Atebank and five Spanish banks- Banca Civica, Diada, Espiga and Unnim- failed the test. However, all listed Spanish banks passed. The overall capital shortfall among the failed banks was €3.5bn. Investors reacted positively to the news. Societe Generale is the biggest riser in France, closely followed by BNP Paribas and Credit Agricole.Across the markets, the Dax in Frankfurt is 10 higher at 6,176, with the Cac 4 points up at 3,611. The Swiss market is 26 points lower at 6,175.Elsewhere, BP has confirmed it will hold a board meeting today to decide the fate of chief executive Tony Hayward, but said no final decision has been made. Widespread reports over the weekend suggested Hayward is set to step down, but BP said its board will decide this evening on his future and also on the size of any provisions for the Gulf of Mexico disaster. CAC 40 - RisersSociete Generale (GLE) € 39.50 +3.95%Dexia (DEXB) € 3.41 +3.21%BNP Paribas (BNP) € 51.05 +2.47%Credit Agricole (ACA) € 9.58 +2.38%Cap Gemini (CAP) € 35.81 +1.23%Alcatel-Lucent (ALU) € 2.10 +1.11%ArcelorMittal SA (MT) € 25.55 +1.05%AXA (CS) € 13.23 +1.03%LVMH (MC) € 94.70 +0.64%Vallourec (VK) € 81.43 +0.61%CAC 40 - FallersEADS (EAD) € 17.72 -1.64%EDF (EDF) € 31.61 -0.78%ST Microelectronics (STM) € 6.45 -0.72%Total (FP) € 37.90 -0.63%Veolia Environnement (VIE) € 20.00 -0.45%Essilor International (EI) € 48.71 -0.44%France Telecom (FTE) € 14.90 -0.43%Alstom (ALO) € 38.40 -0.40%Air Liquide (AI) € 87.45 -0.38%Danone (BN) € 45.99 -0.33%