ROME: Europe’s benchmark stock index rose for the first time in seven days on Wednesday, propelled higher by fresh hopes that Greece’s creditors will release more bailout cash.
The Stoxx Europe 600 index SXXP, +1.80% jumped 1.8% to close at 390.78, after logging its longest losing streak since December Tuesday.
A selloff in European government bonds and Greece’s impasse with its international creditors have weighed heavily on stocks over the past week, with the pan-European benchmark ending lower for a sixth straight session Tuesday.
Greek hopes: The stock-market jitters eased Wednesday, with markets extending gains late in the afternoon after reports that Germany is considering a staggered deal on aid for Greece. Bloomberg reported that the Germans may be satisfied with Athens committing to at least one economic reform up front in order to unlock a portion of the much needed bailout cash.
Greek Prime Minister Alexis Tsipras is expected to meet German Chancellor Angela Merkel and French President François Hollande later on Wednesday to try to get the two sides closer to a deal.
Time is running out for Greece to strike an agreement to unlock new financing, with Athens facing major debt repayments later in the month. On Tuesday, European officials quickly dismissed a Greek compromise proposal, saying it didn’t go far enough in meeting creditors’ demands. Read: Get ready for a big rally in Europe if Greece reaches deal.
