ROME: European stocks ended higher on Tuesday amid increased optimism that Greece will strike a deal with its creditors, and following solid Eurozone data.
The benchmark Stoxx Europe 600 index closed up 1.16%, France’s CAC 40 ended 1.18% higher and Germany’s DAX finished up 0.72%.
In the periphery, Greece was the standout performer, with the ASE Composite ending up 6.11%, while Spain’s IBEX 35 rose 0.30% and Italy’s FTSE Mib gained 0.35%.
Greek 10- and 2-year government bonds extended Monday’s gains, while yields on the corresponding Spanish and Italian bonds were also lower. Bond yields move inversely to prices.
In currency markets, the euro slid to trade down at $1.1181.
Jane Foley, senior currency strategist at Rabobank, said the soft tone of the euro since the start of the week and its correlation with other risk assets adds weight to Rabobank’s view that the single currency has been acting as somewhat of a safe haven given the Eurozone’s large current account surplus.
