Euro stocks pare losses

Shares have rallied around the rise of Citigroup although there were fewer other developments as credit concerns and rising oil prices, with the figure of a potential $150 a barrel, stalling economic optimism.

Citigroup’s results where better than expected as they posted a smaller than expected second-quarter loss of $2.5 billion, even though there was $11.7 billion of write-downs and credit losses.

Shares in the group rose more than 10 percent and this was followed by Wells Fargo and JP Morgan Chase, as the equity markets were lifted as investors looked for signs, that institutions that had been hit hard by the credit crunch ,have finally turned the corner.

European stocks pared losses as crude oil surged from a six-week low and base metals climbed resulting in Europe’s Dow Jones Stoxx 600 Index remained unchanged at 280.7 in London.

Total SA, Europe’s third-biggest energy producer and BHP Billiton Ltd., the world’s largest mining company, also advanced causing increased optimism.

National benchmark indexes rose in 12 of 17 western European markets and the U.K.’s FTSE 100 climbed 0.1 percent and France’s CAC 40 was up by 0.2 percent.

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