LONDON: U.K. stocks bounced higher Monday, climbing alongside other European equities on renewed hopes that a standoff between debt-laden Greece and its creditors will soon be broken.
The FTSE 100 UKX, +1.29% climbed 1.3% to 6,796.22, with all sectors advancing.
European stocks SXXP, +1.90% rallied Monday in a packed day of meetings for Greek and European officials, aimed at directing Greece away from the brink of default and the possibility of the country leaving the eurozone. Read: Greek crisis: Who’s meeting and when, on Monday
The meetings take place after the Greek government on Sunday proposed some last-ditch offers to its creditors, including tax increases and spending cuts to hit budget targets. The package has been met with some optimistic feedback, with European Commission President Jean-Claude Juncker saying late Sunday in a tweet that it was a “good basis for progress” in Monday’s EU leaders meeting.
“Finally it would appear that the leftist Syriza Greek government are realizing the gravity of the situation and there may be something to work with,” said Richard Perry, market analyst at Hantec Markets, in note.
While the prospects for a deal appeared brighter, developments surrounding the talks “could create significant volatility,” and could make it “a difficult day to trade with any degree of confidence,” Perry cautioned. Read: Decision day for Greece — analysts upbeat on deal prospects
