(MENAFN- Khaleej Times)Chinese shares tip back into negative territory with 5.2% drop
London — Hopes that a deal between Greece and its creditors could be cobbled together in time to avoid a messy Greek exit from the euro sent stock markets across Europe sharply higher on Wednesday.
In Europe the CAC-40 in France was up 2.5 per cent at 4908 while Germany’s DAX rose 2.1 per cent to 11171. The FTSE 100 index of leading European shares was 1.4 per cent higher at 6613. Wall Street was poised for solid gains with both Dow futures and the broader S&P 500 futures up 0.8 percent.
The hopes have been stirred by a two-page letter sent to Greece’s creditors on Tuesday by Greek Prime Minister Alexis Tsipras. In it he appears to be making big concessions in a request for a new bailout deal.
However German Finance Minister Wolfgang Schaeuble appeared to pour cold water on the prospects of any deal certainly before Sunday’s planned referendum on recent creditor proposals.
Finance ministers from the 19-country eurozone are due to hold a teleconference later over the new proposals.
“The acceptance does come with conditions attached which is hardly surprising but they do appear to be watered down compared to previous demands” said Craig Erlam senior market analyst at OANDA.
While much of the focus in financial markets is on Greece there’s a raft of US economic data to come this week notably on Thursday when the monthly nonfarm payrolls report is published. The data can often set the market tone for a week or two especially at a time when the US Federal Reserve is mulling when to start raising interest rates.
Japan’s Nikkei 225 stock index edged 0.5 per cent higher to 20329.32 after a central bank survey showed businesses holding unexpectedly optimistic outlooks despite recent weak data.
The Shanghai Composite Index which has seen wild swings over the past few days tipped back into negative territory tumbling 5.2 per cent to 4053.70. South Korea’s Kospi rose 1.1 per cent to 2097.89 while Australia’s S&P ASX/200 rose 1.0 per cent to 5515.70. Shares in Southeast Asia were higher.
Hong Kong’s market was closed for a holiday.
The S&P BSE benchmark Sensex crossed the 28000 mark and ended at nearly two-and-a-half month high at 28020.87. The CNX Nifty also finished at 8453.05 on fresh buying on the back of higher global cues as overseas markets stabilised.
The Sensex resumed higher at 27823.65 and shot up further to a high of 28099.25 before ending at nearly two-and-a-half month high at 28020.87 showing a gain of 240.04 points or 0.86 per cent.
The Sensex which showed a gain of 240.04 points or 0.86 per cent had last ended at 28442.10 on April 17. The CNX 50-share Nifty also ended at nearly two-and-a-half month high at 8453.05 disclosing a gain of 84.35 points or 1.01 per cent. It had last ended at 8606.00 on April 17.
Gold hovered above a near-four-week low on Wednesday due to a stronger dollar and hopes of progress in the Greek debt crisis. Spot gold was unchanged at $1172.56 an ounce at 1027 GMT. It had touched its lowest since June 5 at $1166.35 in the previous session.
In currency trading the dollar was firm. The euro was down 02 per cent at $1.1106 while the dollar rose 0.4 per cent to 122.91 yen.
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