European indices rise on prospect of Greece deal

European indices rise on prospect of Greece deal

The prospect of a Greek bailout deal has driven European stockmarkets higher.

The FTSE 100 is trading up 1.25 per cent to 6,663.94 in response, while Germany’s Xetra Dax index has climbed 2.21 per cent to reach 11,239.79.

France’s CAC 40 index has gained 2.56 per cent to 4,878.95 as the latest deal from Greece continued to restore market confidence.

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Greek prime minister Alexis Tsipras has presented new proposals in a bid to prevent the country exiting the eurozone.

Chris Weston, market analyst at IG Group, said Greece was “aiding sentiment and traders are expressing the view that ‘Greece is solved, get involved’, or words to that effect”.

He added: “It is by far the most likely proposal to be accepted by the creditor nations, but will it be the carrot to allow what everyone knows is inevitable one way or another – a full restructuring of debt?

“A vote through the parliament does form a strong basis to take into the Sunday’s EU meeting and if we get a decision then we could be staring at a situation where Greece receive €53bn and are fully funded until 2018.”