PARIS France, Italy, Spain and Belgium are banning short sales on select to calm shares amid efforts to market turmoil, the Bank shares, the wild circular sent and has aggravated concerns about Europe's large debt.
The EU markets supervisor, the ESMA movement announced late Thursday night to increase monitoring of the stormy markets earlier in the day. Movement limited two-day Whipsaw trading that saw the market value of French banks fall and rise of billions of euros.
A trader wants to make a profit in a short sale by you bet on the decline in the price of a stock. The practice is been blamed for contributing to market volatility.
The ESMA said in a statement that "the four countries have announced today or will soon be known new bans on short sales or short positions" Friday.
The French market regulator, which announced late Thursday AMF to that net-short-selling bans BNP Paribas and Credit Agricole and leading insurer for 15 days on 11 shares, including the banks Societe Generale,.
Authority of Belgium said that it would prohibit short selling Friday on financial stocks such as leading banks and insurance companies. Belgium had already banned short selling, which is essentially a bet on a decline in the price of a share without borrowing of share since August 2008.
Several countries banned short selling in the middle of the financial crisis 2008 to try to tame the volatility. But some experts the prohibitions, actually a feeling of uncertainty contributed to.
French bankers and officials who encrypted to investors nerves after days to calm down, that France of the next largest economy, could lose the coveted AAA rating proposals. Appeared of late in the day, these efforts have an impact, but economists said that the upturn remained very fragile.
The EU markets supervisor said on Thursday that the regulatory authorities monitoring the financial markets, after which rose days of steep Selloffs.
Bank of France head Christian Noyer guilt "unfounded rumors" for crashes in shares of the top banks, BNP Paribas and Societe Generale, and said that financial institutions of the country sound were. The country's regulator warned sanctions against anyone, the fuels or benefited from rumors, the sell-off fed.
Noyer, said that French banks semi-annual "" confirmed its solidity in a difficult economic environment and the banks capital cushions were healthy.
French bank shares fell Thursday until strong us jobs data helped to drive solid gains late in the European trading day on Wall Street. BNP Paribas closed by 0.3 percent and Societe Generale rose by 3.7 percent.
France takes complaints markets ensure that there are downgraded to his credit under.
Friday's GDP figures attention are France's share of the second quarter. Some warned that France could suffer when there are significant new money to bail out more struggling States of the eurozone.
The leaders of the largest economies who gave eurozone, Germany and France, that they discuss solutions for Europe's financial difficulties Tuesday, will meet.
French President Nicolas Sarkozy said that the two "peace" on the management of the eurozone will present before the end of the summer. German Chancellor Angela Merkel spokesman said the meeting on the proposals, as economic policy and crisis management to improve would focus the zone.
Their triple-A rating of France confirmed all three leading rating agencies and analysts said that she could not identify a trigger for the market turmoil.
"There is nothing behind it, it's a Malintentioned market speculators trading on pure rumors," said Marc Touati, an economist at the French company Assya Compagnie Financiere trade.
After Societe Generale, France of the second-largest bank, the stock saw almost 15 percent of the Bank asked Wednesday, delete the French regulator, to investigate the rumors that it was because of his serious threat of debt from troubled euro-zone economies on the ropes.
Societe Generale CEO Frederic Oudea called the rumors "totally unfounded" and "irrational". Speaking on France-info radio, he urged calm and insisted that basics are the Bank.
Oudea said that Societe Generale their exposure to Greek debt had taken a profit in the second quarter.
France's growth prospects are much better than that of Italy and Spain, but its economic expansion slowed, and it is to reduce a deficit for years, to 7.1 per cent in the last year was not. No other euro-zone economy an AAA-rated has a higher debt as France - around 85 per cent of gross national income.
Adding to the market provide French presidential elections planned for spring 2012 can it make the Government on further cost-cutting measures at a time when the economy slows down.
Elsewhere in Europe announced prefer an increase in unemployment, after a series of unpopular austerity measures aimed, Greece out of debt, the problems in the euro area raised.
And Italian Finance Minister Giulio Tremonti, told lawmakers Thursday that hard and rapid measures are needed in the next two years, to balance the budget by 2013. Top has seen the market turmoil Italy's borrowing costs in the markets up to uncomfortably high.
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Gabriele Steinhauser in Brussels and Melissa Eddy in Berlin contributed to this report.
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