FRANKFURT -- Stocks rose in a technical bounce after recent losses, with German banks leading the move higher.
Russian and Asian financial woes continued to smolder in the background, but the focus turned to oversold market conditions.
soared 6.5% after being added to
recommended list. Goldman said Dresdner's recent selloff was overdone. Other German banks enjoyed spillover strength, with
up 5.6% and
The European banking sector also was bolstered by Switzerland's
, which rose 3.8% after reporting better-than-expected earnings.
In Frankfurt, Germany's
was up 118 points, or 2.3%, at 5372, while in London the
was up 96, or 1.7%, at 5650 and in Paris the
was up 74, or 1.9%, at 4012.
Markets here were also cheered by gains in
futures, which were up 7.20 points at 1100.40. European yields fell again today to record lows. The U.S. long bond was yielding 5.46%.
, which will report earnings this afternoon, was up 3.7%. In Paris, telecoms were big winners, with
FTE ADR) up 6% and
ALA ADR) up 3.2%. In London,
SBH ADR) was up 4.1%.
Despite the gains, some observers were skeptical that today's bounce would hold, warning that volumes were extremely light and the global financial environment still dangerous.
Philip Dumas, head of European institutional sales at
in London, said traders who thrive on volatility were driving today's market in the hope of turning a quick profit. Most longer-term institutional investors were still on the sidelines, although a few were "dipping their toes in the water."
Richard Vennekold, head of German equities at
in Munich, said, "There is no fresh money coming into this market. It's only a technical reaction. Nothing fundamental has changed."
He noted that the situation in Russia was still alarming, with the ruble dropping 9% today against the dollar. The yen was also weaker against the dollar, at 144.53, after Japanese Finance Minister
toned down talk of intervention.
Asian stock markets were mixed overnight, with the
each adding 0.6%. Hong Kong authorities again propped up the market by buying shares, though the most active stock in London was
, down 0.5%.