European equity markets recovered on Wednesday from losses in the previous session as a rebound in Banco Espirito Santo and in mining stocks lifted the region's bourses, Reuters reported. The pan-European FTSEurofirst 300 index, which had slipped 0.4 percent on Tuesday, was up 1.2 percent at 1,375.14 points. The euro zone's blue-chip Euro STOXX 50 index rose 1.4 percent to 3,197.81 points. Banco Espirito Santo (BES) jumped 15 percent, after hitting record lows on Tuesday, enabling Lisbon's benchmark PSI-20 index to advance by 2.7 percent. Traders said that even though BES remained dogged by the fact that a holding company of the bank's founding family had failed to repay a $1 billion loan, some investors were now starting to think the stock represented a relative bargain. They added that BES was also benefiting from an extension to a ban on short-selling on its shares - or betting on future falls in a share price - and from expectations among investors that it could raise more capital if necessary.
