ROME: European stock markets turned higher Tuesday, catching a breather after hitting an almost four-month low on worries that debt-laden Greece is heading for a default or even an exit from the eurozone.
The Stoxx Europe 600 index SXXP, +0.64% ended up 0.6% at 385.49, after falling as much as 1.1% earlier in the session. Equities appeared to have moved higher alongside U.S. stocks SPX, +0.57% DJIA, +0.64% which gained following stronger-than-expected housing data. Tuesday’s advance was the first for the pan-European index in three sessions.
On Monday, the benchmark tumbled 1.6% after talks between Athens and its European creditors broke down Sunday, with European officials dismissing Greece’s latest reform proposal as “vague and repetitive.”
There were few signs of progress in negotiations Tuesday. Greek Finance Minister Yanis Varoufakis reportedly said his country has no plans of presenting a new reform proposal at a closely watched Eurogroup meeting Thursday, insisting the lenders take Greece’s suggested reforms seriously.
“The childish behavior continues on both sides as each party is blaming the other side for their unreasonable demands and their reluctance to not to give up,” said Naeem Aslam, chief market analyst at Ava Trade, in a note.
