European stock markets CAC 40 jumped october 27 2011

European stock markets CAC 40 jumped october 27 2011 : European stock markets extended gains on Thursday, as investor confidence was boosted after European leaders and banks struck a deal to take a ‘voluntary’ 50% loss on the face value of their Greek debt. During European morning trade, the EURO STOXX 50 surged 5.46%, France’s CAC 40 jumped 5.54%, while Germany’s DAX 30 soared 4.8%.

The agreement on Greek debt was critical to assembling a package of measures to contain the debt crisis in the euro zone. The writedown will reduce Greece’s debt burden from 160% of GDP to a more sustainable 120% by 2020.

Leaders also agreed to expand the firepower of the euro zone's bailout fund, the European Financial Stability Facility, but the final details on how to enlarge the fund were not expected to be agreed until November.

The financial sector continued to post strong gains, with France's Credit Agricole skyrocketing 23.14%, BNP Paribas surging 19.31% and Societe General soaring 19.24%, while German lenders Deutsche Bank and Commerzbank jumped 15.97% and 14.48%.

Peripheral lenders also extended gains, as Italian bank Unicredit soared 9.20% and Intesa Sanpaolo climbed 9.45%, while Spain's BBVA and Banco Santander advanced 8.38% and 6.58% respectively.

Meanwhile, BASF, the world's largest chemical company saw shares shoot up 6.48% after reporting a higher-than-expected third-quarter profit, while Europe's biggest oil company, Shell climbed 1.59% after saying its third-quarter earnings doubled as it ramped up projects from Qatar to Canada.

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