(MENAFN- AFP) European stock markets closed higher Monday on optimism for a new Greek bailout deal, with London rebounding after poor Chinese data had dragged the index down.
London's benchmark FTSE 100 index ended the day 0.26 percent ahead to stand at 6,736.22 points in the British capital, after spending most of the day in the red.
In the eurozone, Frankfurt's DAX 30 finished 0.99 percent higher at 11,604.78 points, and the CAC 40 in Paris won 0.79 percent to 5,195.41 compared with Friday's close.
In foreign exchange, the euro rose to $1.0988 from $1.0962 late on Friday in New York.
The weak figures from China had weighed particularly hard on shares in oil majors and mining groups, and dragged the entire FTSE down for most of the day.
But late in the afternoon word arose from US Federal Reserve vice chairman Stanley Fischer's positive comments on low inflation levels and "full employment."
Yet that upbeat view also carried a dissonant note that gave investors new hopes a US interest rate hike may come later than expected.
"Whilst (Fischer's) comments seemed to contain the seeds of (rate) hawkishness, especially with his bullish view of the jobs sector, he claimed that the Fed still needed to see a return to 'normal' levels of inflation before a hike could happen," said Spreadex analyst Connor Campbell.
Fischer's comments also sent Wall Street higher after it opened with gains on news that Warren Buffett's Berkshire Hathaway would acquire aerospace supplier Precision Castparts for $37.2 billion.
In trades around noon in New York, the Dow Jones Industrial Average advanced l.27 percent to 17,594.72 points.
The tech-rich Nasdaq Composite Index rose 1.21 percent to 5,100.23, though the broad-based S&P 500 shed earlier gains to drop 0.29 percent at 2,077.57 points.
- 'Thoroughness over speed' -
Analysts also said Monday that sentiment was lifted by reports Greece may be nearing a deal to finalise its third bailout package.
Athens and its creditors resumed talks Monday after marathon discussions late into the night, with both sides indicating that terms of the bailout were drawing close.
They were hammering out the draft of a crucial new bailout of up to 86 billion euros ($94 billion) in exchange for further reforms before the debt-ridden country must repay 3.4 billion euros to the European Central Bank on August 20.
Germany however warned that negotiations must emphasise "thoroughness over speed", appearing to throw cold water on Greek optimism for a quick deal.
Asian markets mostly rose on Monday, despite confounding economic data from China, and in anticipation of intervention by Beijing to engineer mergers between state-owned companies.
Tokyo equities scraped back earlier losses to close up 0.41 percent and Sydney added 0.63 percent.
Shanghai's main index closed up almost five percent on merger speculation between two major state-owned shipping enterprises, offsetting the weak Chinese economic figures released over the weekend, dealers said.
China's foreign trade performance worsened in July with both exports and imports falling more than eight percent on an annual basis, data revealed on Saturday.
Consumer inflation meanwhile accelerated slightly to 1.6 percent in July, compared with 1.4 percent in June, official data showed on Sunday, although analysts warned the slow rise in prices is still a risk for China's economy.
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