ROME: European stocks and bonds surged Monday as investors sensed a glimmer of hope that Greece was moving closer to a deal with creditors ahead of an emergency summit of eurozone leaders.
The Stoxx Europe 600 was 1.9% higher by midmorning after Athens submitted a last-ditch package of proposals to creditors in a bid to unlock the financing needed to avoid a default.
Senior European Commission official Martin Selmayr tweeted late Sunday that the Greek proposal was a “good basis for progress at tomorrow’s euro summit.”
David Vickers, a senior portfolio manager at Russell Investments, which has around $272 billion in assets under management, said that market optimism is being fueled by the fact that the two sides are still engaging.
“Both parties have in the last day or two showed that it’s in their interest to find an agreement and that is something that is still instilling confidence in the investor community,” he added.
He is optimistic on European stocks and bonds, saying that “it’s clear that we’re now closer to the end than the beginning of negotiations,” and that however they end, there will be some degree of relief.
European stocks and bonds rallied Monday after Greece submitted a last-ditch package of proposals to creditors. ENLARGE
