LONDON: European stocks finished higher Thursday, but spent much of the session swinging between gains and losses amid the latest twists in Greece’s debt drama.
The Stoxx Europe 600 SXXP, +0.27% closed up 0.3% at 381.41. The index had fallen after Germany said Greece’s request for a six-month loan extension doesn’t represent “a substantial proposal for a solution.”
Greece has been making a distinction between a loan agreement and the 240-billion-euro ($273 billion) bailout program, which is set to end later this month. Germany argued the Greek request doesn’t meet the bailout requirements and said the proposal only aims at getting bridging financing.
The Stoxx 600 early Thursday had been down by as much as 0.8%, but turned higher after Greece submitted the loan request, even as it made clear it wouldn’t accept all the strict austerity measures required under its bailout program. Eurozone finance ministers, known as the Eurogroup, were expected to review the proposal on Friday.
Greece’s Athex Composite GD, +1.06% also seesawed throughout the session, but finished up 1.1% at 856.50. Greek banking stocks held to gains, with National Bank of Greece SA ETE, +7.14% tacking on 7.1% and Alpha Bank AE ALPHA, +6.41% climbing 6.4%. Piraeus Bank SA TPEIR, +4.48% moved 4.5% higher and Eurobank Ergasias SA EUROB, +2.56% gained 2.6%.
The euro EURUSD, -0.02% fell to $1.1389 from late Wednesday’s level of $1.1398. It was largely unchanged after the release of minutes from the European Central Bank’s policy meeting last month. The minutes showed concerns about persistent low inflation prompted officials to approve a larger-than-expected bond-purchase plan.
