European Stocks Steady, But Post Worst Weekly Loss In Months

(RTTNews) - The major European markets steadied on Friday after tumbling to their lowest levels in two months amid Portugal's banking woes.

Despite some modest gains today, European stocks turned in their worst weekly performance since March.

Markets are worried that Europe's banking system is susceptible to contagion from Portugal, where Portugal's regulator suspended trading of Banco Espirito Santo yesterday after its share price crashed.

The stock added 4 percent today, as Portugal's central bank reassured investors that the solvency of embattled bank Banco Espirito Santo is "solid."

The Euro Stoxx 50 index of eurozone bluechip stocks added 0.21 percent, but recorded a weekly loss of 3.4 percent.

The German DAX gained 0.07 percent, helped by gains among Continental AG and automakers BMW and Volkswagen. Commerzbank extended recent losses.

France's CAC 40 rose 0.35 percent. Alstom rose 3.1 percent and BNP Paribas rebounded with a 1.4 percent gain.

In the U.K., the FTSE 100 rose 0.25 percent despite weaker mining shares. Shire PLC added 5.8 percent.

Imperial Tobacco rose 3 percent. The company confirmed it is in discussions with Reynolds American Inc. and Lorillard, Inc. to evaluate a possible acquisition of certain assets and brands owned by them. Reynolds is said to be nearing a deal to acquire smaller rival Lorillard.

Cap Gemini lost 1.2 percent. Its Indian peer Infosys Technologies reported higher first-quarter profit that topped expectations, but said employee attrition rates are worrisome and it is adopting measures to retain talent.