LONDON (ShareCast) - Banks were leading the rebound on Tuesday morning, following yesterday's steep sell-off on the back of debt fears in the US and also closer to home.

The Cac was 21 points higher at 2,916 (+0.72%), the Ibex rose 15 to 8,036 (+0.18%), while the Dax gained 24 to 5,630 (+0.43%).

Likely to limit gains today is last night's confirmation by US bipartisan 'supercommittee' that they have not agreed on a plan to cut the nation's deficit by $1.2trn.

"Despite our inability to bridge the committee's significant differences, we end this process united in our belief that the nation's fiscal crisis must be addressed and that we cannot leave it for the next generation to solve," according to a joint statement by Republican representative Jeb Hensarling and Democratic senator Patty Murray.

Nevertheless, Standard & Poor's and Moody's reiterated their credit ratings of the US last night.

In other news, credit ratings agency Standard & Poor's has this morning confirmed its 'AA-' rating on Spain's debt although the threat of a downgrade remains the same following the change in government which is now expected following elections last Sunday. S&P maintained its negative outlook on the country´s ratings.

Spain's Treasury is planning to sell up to €3bn in three- and six-month government debt today.

Banking peers BNP Paribas, Deutsche Bank and Banca Popolare di Milano were among the high risers.

Energy giants Statoil and Total were also making gains.

BC

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