European markets hold gains amid uncertainty

European shares continued to cling on to most of their gains by midday today.

European shares continued to cling on to most of their gains by midday today.

But with US stock index futures turning negative after US shares staged their biggest one-day bounce since 1987 yesterday, strategists are cautious.

"This is not just mark-up, there's clearly been some business with it, but we're not seeing a wholesale move back into equities," said Mr Nigel Cobby, managing director for European equities at Deutsche Bank.

The FTSE Eurotop 300 index of pan-European blue chips was 3.2 per cent higher; the narrower DJ Euro Stoxx 50 index rose 3.6 per cent.

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The gains were broad-based, with risers outnumbering decliners by about nine-to-one, although telecoms and insurance companies headed the leaderboards.

But strategists said the outlook for European shares remained cloudy and were loathe to say the market had reached a definitive turning point.