European shares turned higher after signs of mixed progress at the European Union summit and despite a downgrade to three French banks by Moody’s Investors Service.
The FTSE was up 0.1% at the time of writing. The CAC 40 Paris was up 0.7% and the DAX was down 0.4%.
EU leaders agreed stricter budget rules for the euro-zone and secured the support of 23 member nations who agreed to form a new fiscal compact.
At the end of the first working day of the summit, European Council President Herman van Rompuy said financial resources will be increased to address the crisis. Euro-area and other states will aim to make additional resources of up to 200 billion euros to the International Monetary Fund to fight the crisis.
Stocks on the Move
Royal Bank of Scotland was up 0.6% while Barclays and Lloyds gained 1.7% and 1.6% each, respectively.
Banks brushed aside a downgrade by Moody’s to BNP Paribas, Societe Generale and Credit Agricole. Moody’s said liquidity and funding conditions for the banks have “deteriorated significantly,” against deteriorating macroeconomic fundamentals.
BNP Paribas was up 2% while Societe Generale gained 0.8%. Credit Agricole advanced 1.5%.
Commerzbank gained 0.5% in Frankfurt while Deutsche Bank was up 2.1%. Industrial conglomerate Siemens slipped 0.5% after a broker downgrade.
