European shares, euro claw back up after sell-off
By Marc Jones
LONDON (Reuters) - European shares and the euro clawed back up on Friday and oil rebounded from a 1-1/2 month low as investors brushed aside the latest news of Britain's and Italy's economic and debt problems.
Having ended three of the last four sessions in the red, the FTSEurofirst 300 .FTEU3 was up 0.3 percent at mid-morning, a rise matched by the MSCI global index .MIWD00000PUS.
Helped on by the expiry of options contracts, London's FTSE 100 .FTSE, Paris's CAC-40 .FCHI and Frankfurt's DAX .GDAXI were up between 0.4 and 0.7 percent higher after Australian, Japanese and Hong Kong markets all rose. .L .EU .N
"One of the real plus points we have had this week is that there have been no European politicians saying anything stupid, so if that can continue over the coming weeks it will help stabilize markets," said Alastair McCaig at financial spread betting firm IG index.
Markets brushed off a well-flagged report from the UK showing its plans to bring down its deficit have fallen behind target as the European debt crisis has hit global growth.
It followed Italy's warning late on Wednesday that its recession will be far more severe than forecast, making it harder to reduce the country's debt burden.
The euro, which has lost around 1.5 percent since hitting a 4-1/2 month high a week ago, regained early momentum after the lower-than-expected UK borrowing figures to climb back above the psychological $1.30 mark at 0900 GMT.
BONDS, OIL Continued...