Europe Stocks Gain as ECB Holds Emergency Meeting

European shares rebounded in early trading on Wednesday after a European Central Bank spokesman said that the rate-setting board of governors would hold a meeting that was not on the agenda to discuss the recent sell-off in government bond markets.

An index of euro zone shares advanced 1.3 percent by 0706 GMT, while the pan-European Stoxx 600 index rose 0.8 percent.

Shares of Italian banks, which were recently hit by concerns about the rising costs of Rome’s debt, rose.

Shares of eurozone banks fell sharply last week, dragged down by a sell-off in southern European bond markets after the central bank said last week it saw no need to create a new tool to help weaker economies cope with rising borrowing costs as it ended bond-buying and looked to raise interest rates.

Several sources familiar with the matter said that the surprise meeting of the European Central Bank is scheduled for 0900 GMT, but it is not yet clear whether it will issue a statement.