Spanish Banking Shares Open Sharply Higher On EU Agreement

Spanish banking stocks opened sharply higher Monday following unprecedented moves by European governments, central banks and the U.S. Federal Reserve to contain Europe's sovereign debt crisis.

After an extended pre-opening auction, Banco Santander SA (STD), Spain's largest bank by market capitalization opened up 19% at EUR9.25, while Banco Bilbao Vizcaya Argentaria SA (BBVA) opened 18% higher at EUR9.45.

As of 0736 GMT, not all of the shares of Spain's blue-chip IBEX-35 index had started trading.

Euro-zone finance ministers in the early hours of Monday morning announced a EUR500 billion support plan for countries facing financial meltdown, with a pledge of up to EUR250 billion in additional funds from the International Monetary Fund.

The European Central Bank said it will intervene in the euro zone's public and private debt markets, opening the way for it to buy up European government debt.

In addition, the U.S. Federal Reserve said Sunday that it would revive an emergency lending program used during the financial crisis. The Fed will ship billions of dollars overseas through foreign central banks, including the European Central Bank, so they can, in turn, lend the money out to banks in their home countries in need of dollar funding.

-By Bernd Radowitz and Jonathan House, Dow Jones Newswires; +34 91 395 8121; jonathan.house@dowjones.com

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