ROME: European equity markets have closed sharply higher before a G7 finance meeting focussing on Greece’s debt drama, while airlines group IAG neared its takeover of Irish rival Aer Lingus.
Finance ministers and central bank governors of the Group of Seven (G7) wealthiest nations are meeting in Dresden to discuss the global economy and financial regulation, with Athens on the agenda amid stubborn fears of a Greek eurozone exit.
German finance minister Wolfgang Schaeuble has invited his counterparts and their central bank chiefs from Britain, Canada, France, Italy, Japan and the United States, for the gathering that kicks off today.
Meantime, markets were attentive to reports quoting Greek government sources saying Greece and its creditors were to start drafting a long-awaited agreement that would release much needed bailout loans for the struggling eurozone country.
London’s benchmark FTSE 100 index ended the day up 1.21 per cent at 7,033.33 points, as investors also tracked the state opening of parliament and the legislative programme for Prime Minister David Cameron’s newly-elected British government.
In Frankfurt, the DAX 30 climbed 1.26 per cent to 11,771.13 points, while in Paris the CAC 40 rose 1.95 per cent to 5,182 points.
The European single currency rose from a new one-month low earlier in the day to $US1.0897, compared to $US1.0879 late in New York on Tuesday.
“News in the eurozone has alternated between bearish talk about the chances of a deal being struck this week, and reports that, despite key disagreements still present between both sides, that a ‘staff level’ deal is being drafted,” Spreadex analyst Connor Campbell said.
