ROME: European stocks edged higher Friday, supported by investor optimism that Greece and its international creditors will clinch a debt deal.
Having slipped earlier in the day, the Stoxx Europe 600 closed 0.1% higher to bring its gains for the week to just below 3%. Athens main stock index rose 2.0%. Earlier Friday, it was down more than 1.5%.
Investors are hesitant to predict exactly how negotiations over the weekend will pan out, but many expect an agreement to be reached, even if only for the short term.
“The downside risk of not doing a deal would appear to be so great for both Greece and the eurozone,” said Gary Jenkins, chief credit strategist at asset manager LNG Capital. He said he expects the two sides to “agree something over the weekend, even if it is a long way from a complete resolution.”
