European share markets reverse earlier gains

European stock markets have lost earlier gains amid continuing fears over the eurozone debt crisis and the health of Europeans banks.

After opening with gains of around 2%, London's FTSE index, Germany's Dax index and France's Cac 40 lose the rises to trade flat.

French banking sector shares had been among the biggest gainers, with Societe Generale shares up 8% in morning trade.

But in volatile trading, the bank's shares were down 8% by lunchtime.

Threat about the financial stability of France and its banks had been a key trigger for Wednesday's steep falls.

Rumours had swept the stock market that France was about to lose its AAA credit rating and that Societe Generale was in line for a government bailout.

Denials came from both the French Treasury and Societe Generale, whose chief executive, Frederic Oudea, said the rumours were "absolutely rubbish" in an interview with CNBC television after the stock market closed.

Mr Oudea also spoke to France Info radio. "People are scared," he said, "so the tiniest information touches off irrational threat. To our clients, we have to tell them that these rumours are not true and that they can have confidence in Societe Generale."

The bank has asked the French Market Authorities to investigate the source of the rumours, which left its shares 23% lower at one point during Wednesday's trading.