BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - French shares rose in early trade Wednesday, with banks leading the surge after Credit Agricole reported a smaller-than-expected drop in fourth-quarter net profit, hurt by a write-down on its domestic French retail unit.
Also, with Fed Chair Janet Yellen backing gradual interest rate increases, investors expect banks to benefit from higher interest rates.
The benchmark CAC 40 was up 24 points or 0.49 percent at 4,919 in opening deals after rising 0.2 percent on Tuesday.
Credit Agricole shares jumped 4 percent, while BNP Paribas and Societe Generale surged about 2 percent each.
Food group Danone rose half a percent after unveiling a 1 billion euro cost-cutting plan over three years, saying the turnaround of its European dairy division was taking longer than expected.
Copyright RTT News/dpa-AFX