European shares bounced back after falling sharply earlier in the week.
CAC40 ended 4.02% higher on Friday but it ended nearly 2% lower than it had closed a week ago. French stocks went up on Friday even though the French economy had 0% economic growth in the second quarter. German DAX was up by 3.45 percent on Friday but it lost 4% over the past 5 trading days. FTSE100 was up 3.04% on Friday. FTSE bucked the trend and gained 1.4% since August 5th.
The shares of French banks fluctuated during this week after the rumors over the health of French Societe Generale spread. Before the end of this week 4 European countries have decided to ban the short selling of the financial stocks. It is said that the ban will be temporary. It is uncertain whether the ban on short selling will restore the confidence in the European markets and stop the decline of the markets in the coming days.