The European bank shares rose up because of the huge positive response of the stock markets towards the stress tests of Friday over all banks in Europe.
The shares of the UK banks including Barclays, Royal Bank of Scotland and Lloyds Banking Group rose up by 2%. Meanwhile the shares of Societe Generale rose by 3.6% in France.
Out of total 91 banks, seven banks have failed to pass the stress test which included five Spanish banks, one bank of Greece and one bank of Germany. The tests were carried out to test the ability of the banks to tackle with the economic crisis in the future.
If so many banks failed to pass the tests that would have resulted loss of confidence in the banking sector of Europe, which was already under so much pressure.
But if all banks passed the test, the tests would be considered as too easy. After the tests everybody waited to see the reaction of the stock market.
The stress tests on the European banks have provided some sort of relaxation to the equity markets.