LONDON (Reuters) – Britain’s benchmark share index rose for a third consecutive day on Monday, helped by hopes of an election victory for Greek parties committed to keeping the country in the euro zone, although traders cautioned any rally could be short-lived.

The blue-chip FTSE 100 index .FTSE was up 48.50 points, or 0.9 percent, at 5,400.03 points. It earlier reached an intraday peak of 5,411.64 points – the index’s highest intraday point since May 17.

However, Brown Shipley fund manager John Smith said he did not see the index making much progress beyond the 5,500 point level due to fears over the euro zone crisis and a slowdown in the world economy.

“I don’t think the FTSE can sustain levels of over 5,500. There’s still too much uncertainty, not only with Europe but also with signs of a slowdown in China,” said Smith, whose firm manages around 2 billion pounds worth of assets.

Mining stocks, which have fallen sharply in recent weeks due to fears that a global economic slowdown will impact demand for metals, led the FTSE’s leaderboard, with Polymetal International (POLYP.L: Quote, Profile, Research, Stock Buzz) up 3.4 percent and Rio Tinto (RIO.L: Quote, Profile, Research, Stock Buzz) up 2.7 percent.

The FTSE 350 mining sector has fallen nearly 10 percent so far this year, and traders said bargain-hunters had picked out the sector’s badly-beaten stocks to add some risk back into their portfolio due to signs of hope over Greece.

“Anything that allays fears over Greece is a positive. People are just looking for a bit of respite, with the value-players getting back into equities,” said Bastion Capital’s head of equities Adrian Slack.

LONDON (Reuters) – Relentless worries over a possible Greek exit from the euro zone checked European stock markets on Friday after a brief rally following sharp losses earlier in the week, and traders said markets would remain volatile over the coming month.

The FTSEurofirst 300 index initially rose some 0.8 percent, but then fell into negative territory after Belgian Deputy Prime Minister Didier Reynders said central banks and companies would be making a grave error if they were not preparing for Greece to leave the euro zone.

The index, which had fallen to a five-month intraday low of 964.66 points on May 21, was down 0.3 percent at 979.81 points by 7:05 a.m. EDT (1105 GMT).

Traders said that in spite of a two-day rally which occurred as bargain hunters sought out beaten-down stocks, the underlying outlook remained negative.

“Europe is in a recession, China is slowing down and the United States is slowing down as well,” said Michel Juvet, chief investment officer at Swiss bank Bordier & Cie.

Juvet said his firm had cut its European equities exposure earlier this year and was considering re-investing in the sector, but would hold off at present since he felt equities markets could decline further in the near term.

Juvet said he would wait until the European STOXX 600 index fell to below the 220 mark from its current level of around 240 points before buying back into European equities.

LONDON, May 25 (Reuters) – European shares rose for a second day on Friday after stinging losses earlier in the week, as bargain hunters stepped in to buy stocks that had fallen sharply on concerns about the global economy and Europe’s debt problems.

Rising speculation that European authorities could soon initiate new aid measures also boosted stock markets.

The FTSEurofirst 300 index was up 0.6 percent at 988.33 points by 0740 GMT, adding to a 1.1 percent gain on Thursday. Germany’s DAX rose around 1 percent while France’s CAC-40 advanced by 0.7 percent, and the euro zone’s blue-chip Euro STOXX 50 also rose 0.7 percent.

Persistent fears that Greece may have to leave the euro zone had pushed the FTSEurofirst 300 index to a five-month low of 964.66 points earlier this month, and traders have used the recent heavy falls to buy stocks on the cheap.

“I’m not taking big positions but at some point you have to step in,” said ClairInvest fund manager Ion-Marc Valahu.

Valahu said he bought some shares in Italian utility Enel and oil major Eni on Thursday, although he was continuing to steer clear of the financial sector, despite a rebound in European banking shares.

“The periphery European markets have been taken down so far that you’re starting to see some value in stocks,” he said.

LONDON (Reuters) – Britain’s benchmark share index recovered on Thursday from sharp losses during the previous session as a rebound in beaten-down banking stocks helped drive the market back up, although many traders said they would sell on the back of the rally.

The blue-chip FTSE 100 index .FTSE was up 62.70 points, or 1.2 percent, at 5,328.61 points in mid-morning trade. It fell 2.5 percent on Wednesday to a fresh 2012 closing low due to persistent fears that Greece will have to leave the euro zone.

The index also rose in spite of a barrage of poor economic news, such as data showing that Britain’s economic recession had deepened while German business morale collapsed in May, with dealers saying this made a new round of emergency bank funding from authorities possible.

“Bargain-hunters are trying to pick up stocks. I bought some of the financials this morning,” said Hartmann Capital equities and derivatives sales trader Basil Petrides.

Financial stocks have fallen sharply over the last month due to fears about their exposure to Europe’s debt crisis, but Petrides said he had bought shares in UK bank Barclays (BARC.L: Quote, Profile, Research) and insurers Prudential Plc (PRU.L: Quote, Profile, Research) and Aviva (AV.L: Quote, Profile, Research).

“These stocks tend to outperform when the market goes up. Their dividend yields are good and they have good quality earnings,” he added.

The FTSE 350 bank index was up 1.9 percent. Barclays rose by around 1.9 percent, Prudential’s shares increased by around 2 percent and Aviva gained 1.7 percent.

LONDON, May 23 (Reuters) – European shares fell on Wednesday, ending a two-day recovery rally, as fears resurfaced that Greece would have to leave the euro zone, and traders said money was likely to continue to flow out of equities and into bonds or cash in the near term.

The FTSEurofirst 300 index fell 2.2 percent, or 21.68 points, to 971.99 points, wiping out much of the gains made during the previous two days’ rally that had followed losses of more than 5 percent last week.

The euro zone’s blue chip Euro STOXX 50 index declined by 2.7 percent. Germany’s DAX fell 2.3 percent, France’s CAC-40 fell 2.6 percent while Spain’s IBEX dropped 3.3 percent.

Traders cited a Reuters report that euro zone countries would have to prepare contingency plans for the eventuality of Greece leaving the euro zone as a reason for the decline.

Greece denied this was the case, but Belgium said contingency planning for a Greek exit was taking place.

“There was no reason for the market to have gone up on Monday and Tuesday. Contagion worries are creeping across the board again and people will be selling the market down unless authorities do something to end the uncertainty,” said JN Financial senior trader Adrian Redmond.

EU SUMMIT HOPES FADE

LONDON (Reuters) – Britain’s benchmark share index extended its tentative recovery on Tuesday, as mining stocks rose on a rise in the price of copper and on hopes of new moves in China to boost its economy.

The blue-chip FTSE 100 index .FTSE, which suffered a 5-day losing streak last week due to fears over the euro zone debt crisis, was up 55.57 points, or 1.1 percent, to 5,360.05 points by 09:00 a.m. British Time (0800 GMT).

Miners such as Antofagasta ANT.L, Fresnillo (FRES.L: Quote, Profile, Research) and Rio Tinto (RIO.L: Quote, Profile, Research) (RIO.AX: Quote, Profile, Research) all featured on the FTSE’s leaderboard, after a state-backed newspaper said China would fast track approvals for infrastructure investment.

The mining sector was up 2.3 percent, and commodities companies were further buoyed by a rise in the price of copper, with three-month copper on the London Metal Exchange touching a week-high of $7,816 a tonne.

Hopes that a meeting of European Union leaders this week might lead to new measures to tackle the region’s debt crisis, which has worsened in recent weeks on fears over Spain’s banks and a possible Greek exit from the euro zone, also tempted investors to buy up battered stocks.

“The market has had enough down days, and now some of the value-pickers have come out,” said Hartmann Capital equities and derivatives sales trader Basil Petrides.

Petrides said he had bought shares in Royal Bank of Scotland (RBS.L: Quote, Profile, Research), Lloyds (LLOY.L: Quote, Profile, Research) and Barclays (BARC.L: Quote, Profile, Research) on Monday, following sharp falls in their share prices last week.

LONDON (Reuters) – The benchmark share index fell to its lowest closing level in nearly six months on Friday, as persistent fears over a Greek euro exit and debt-laden Spanish banks knocked back heavyweight financial stocks.

The blue-chip FTSE 100 index .FTSE ended down 70.76 points, or 1.3 percent, at 5,267.62 points – its lowest closing level since November 25, when it finished at 5,164.65 points. The FTSE also recorded its third consecutive week of losses.

“I’ve seen fund selling today. I’ve seen international funds coming in and liquidating positions,” said Hartmann Capital equities and derivatives sales trader Basil Petrides.

Part-nationalised banks Lloyds (LLOY.L: Quote, Profile, Research) and Royal Bank of Scotland (RBS.L: Quote, Profile, Research) led the FTSE 100 loserboard, despite a rebound in the share prices of other continental European banks which had fallen heavily earlier in the week.

Traders said concerns about the impact that the European crisis would have on RBS and Lloyds, with both banks exposed to Ireland, drove the slump in their share prices, with Lloyds’ 6.2 percent decline making it the worst-performing FTSE stock.

“I think they’re playing catch up with the rest of the banking sector. A European recession could stub out any growth in the UK, and if the UK economy struggles, then the banks will struggle as well,” said Petrides.

The FTSE 350 banking index fell 2.7 percent, having slumped by around 30 percent over the last three months.

LONDON, May 18 (Reuters) – Britain’s benchmark share index fell to its lowest closing level in nearly six months on Friday, as persistent fears over a Greek euro exit and debt-laden Spanish banks knocked back heavyweight financial stocks.

The blue-chip FTSE 100 index ended down 70.76 points, or 1.3 percent, at 5,267.62 points – its lowest closing level since Nov. 25, when it finished at 5,164.65 points. The FTSE also recorded its third consecutive week of losses.

“I’ve seen fund selling today. I’ve seen international funds coming in and liquidating positions,” said Hartmann Capital equities and derivatives sales trader Basil Petrides.

Part-nationalised banks Lloyds and Royal Bank of Scotland led the FTSE 100 loserboard, despite a rebound in the share prices of other continental European banks which had fallen heavily earlier in the week.

Traders said concerns about the impact that the European crisis would have on RBS and Lloyds, with both banks exposed to Ireland, drove the slump in their share prices, with Lloyds’ 6.2 percent decline making it the worst-performing FTSE stock.

“I think they’re playing catch up with the rest of the banking sector. A European recession could stub out any growth in the UK, and if the UK economy struggles, then the banks will struggle as well,” said Petrides.

The FTSE 350 banking index fell 2.7 percent, having slumped by around 30 percent over the last three months.

LONDON, May 18 (Reuters) – Schroders has cut the exposure of its European equities fund to the financials and industrials sector by about 25 percent over the last month due to a market downturn caused by renewed worries over the financial health of the euro zone.

Rory Bateman, who heads the British fund management group’s European equities arm, also told Reuters on Friday the company had added to its holdings in the pharmaceuticals sector while cutting back in other areas, such as financials and industrials.

“We have taken a little bit off the table in order to quell the volatility in the funds,” said Bateman, who helps manage around 4 billion euros ($5.1 billion) of assets.

“We did feel that the market had had a good run in the first quarter, and we have been trying to lock in some of the performance from the third and fourth quarters of last year.”

Bateman declined to name individual stocks that Schroders had bought or sold in recent weeks.

Earlier this month, Schroders reported net inflows in its asset management division helped cap a fall in first-quarter profit, although Bateman said his funds’ performance had been hit by the May market downturn.

Stock markets have fallen on fears over the health of Spanish banks and political uncertainty in Greece, which holds more elections next month after voters rejected austerity plans, leading to fears Greece may have to leave the euro currency.

LONDON, May 17 (Reuters) – European shares extended their losing streak on Thursday as worries over Spanish lender Bankia caused its shares to fall more than 20 percent, hitting markets and adding to growing fears of contagion from Greece’s economic crisis.

The pan-European FTSE 300 index was down 0.9 percent at 984.22 points by 1026 GMT, close to a 4-1/2 month low of 983.95 points reached on Wednesday.

Spain’s benchmark IBEX index fell nearly 2 percent to its lowest level since mid-2003, as shares in Bankia slumped following a report in the El Mundo newspaper that its customers had withdrawn more than 1 billion euros from their accounts over the past week.

The worries over Bankia caused the euro zone STOXX banking index to fall by more than 3 percent, adding to losses incurred on Wednesday after the European Central Bank said it had stopped providing liquidity to some Greek banks because they had not been successfully recapitalised.

Greece is set to hold fresh elections on June 17 after voters rejected austerity measures imposed on it by the European Union and the IMF, which has heightened fears that it will have to leave the euro zone.

Investors are also worried by the possibility of contagion from a Greek exit from the euro spreading to other countries such as Spain or Italy.

“It’s not Greece leaving the euro that is the major issue, it’s the domino effect,” said John Bearman, chief investment officer at British firm Thomas Miller Investment, which manages roughly 3 billion pounds ($4.8 billion) worth of assets.