LONDON, March 20 European shares broke a
three-day losing streak on Wednesday as investors bet on
policymakers finding a fix for Cyprus bailout problems, although
some traders cautioned against buying up equities at current
The pan-European FTSEurofirst 300 index
provisionally closed up 0.4 percent at 1,199.10 while the euro
zone's blue-chip Euro STOXX 50 index rose 1.4
percent to 2,709.89 points.
Union Bancaire Privee fund manager Rupert Welchman felt the
support of the European Central Bank (ECB) was sufficiently
strong to prevent any major market hit from Cyprus, which
rejected a proposed levy on bank deposits as a condition for a
European bailout earlier this week.
"You've still got the ECB saying it will provide liquidity,"
said Welchman, whose portfolio is overweight on northern
European financial stocks.
"Cyprus will, of course, be a clear negative for European
sentiment and it is a new and substantial negative, but the
bigger picture is that Europe is trying to follow a roadmap to
recovery and in this quest, Cyprus is a sideshow," he added.
A 2.7 percent gain at Sanofi added the most points
to the FTSEurofirst 300 and sent the drugmaker to fresh 7-year
highs, as traders cited speculation that Sanofi could get
regulatory approval for its Aubagio multiple sclerosis treatment