Europe stocks close higher awaiting Greece deal
(MENAFN- Gulf Times) European stock markets closed higher yesterday 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% 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% higher at 11,604.78 points, and the CAC 40 in Paris won 0.79% 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 $37.2bn.
In trades around noon in New York, the Dow Jones Industrial Average advanced l.27% to 17,594.72 points.
The tech-rich Nasdaq Composite Index rose 1.21% to 5,100.23, though the broad-based S&P 500 shed earlier gains to drop 0.29% at 2,077.57 points.
Analysts also said yesterday that sentiment was lifted by reports Greece may be nearing a deal to finalise its third bailout package.
Athens and its creditors resumed talks yesterday 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 ‚¬86bn ($94bn) in exchange for further reforms before the debt-ridden country must repay ‚¬3.4bn 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.
London's benchmark FTSE 100 index ended the day 0.26% 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% higher at 11,604.78 points, and the CAC 40 in Paris won 0.79% 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 $37.2bn.
In trades around noon in New York, the Dow Jones Industrial Average advanced l.27% to 17,594.72 points.
The tech-rich Nasdaq Composite Index rose 1.21% to 5,100.23, though the broad-based S&P 500 shed earlier gains to drop 0.29% at 2,077.57 points.
Analysts also said yesterday that sentiment was lifted by reports Greece may be nearing a deal to finalise its third bailout package.
Athens and its creditors resumed talks yesterday 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 ‚¬86bn ($94bn) in exchange for further reforms before the debt-ridden country must repay ‚¬3.4bn 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.
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