ROME: European stocks rose on Thursday, as equities recovered from a six-day downtrend sparked by a selloff in European bonds and as hopes for progess on the Greek debt front lent some support.
During European morning trade, the EURO STOXX 50 gained 0.41%, France’s CAC 40 rose 0.35%, while Germany’s DAX 30 advanced 0.63%.
European equities came under pressure following a recent selloff in European government bonds, with German 10-year bund yields rising to the highest levels since September 2014 on Wednesday.
Investors remained cautious as uncertainty over Greece continued, but hopes for an agreement on a cash-for-reforms deal lent some support.
Greece’s bailout agreement with the European Union and the International Monetary Fund is set to expire at the end of this month and it cannot make further debt repayments without a new deal.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) rose 0.32% and 0.59%, while Germany’s Deutsche Bank (XETRA:DBKGn) gained 0.49%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MILAN:ISP) edged up 0.09%, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) added 0.08% and 0.14% respectively.
