Banks shine as European stock market rally resumes

European shares resumed their rally on Friday as a bumper stimulus from the European Central Bank fuelled hopes of a faster economic recovery, putting the main benchmarks on course for their best week in two months.

The pan-European STOXX 600 gained 1.2 per cent by 0722 GMT, led by a 3 per cent jump in bank stocks. Insurers, automakers and travel stocks also rose more than 2 per cent.

Global equity markets have climbed strongly this week, with Wall Street indexes nearing record levels as investors focussed on re-opening of economies.


The STOXX 600 is about 15 per cent below all-time highs, but has recovered more than 37 per cent from March lows as fresh stimulus plans for Europe spurred a move into economically sensitive cyclical sectors.

British Airways owner-IAG and easyJet jumped nearly 9 per cent, topping gains on the STOXX 600.