European shares up as Greek deal hopes rise
17.02.2012
European shares reached a six and a half month high today as hopes rose that Greece had done enough to secure a second bailout package worth €130bn.
Greece has set out extra budget savings demanded by its international lenders.
Investor sentiment reportedly improved after eurozone officials revealed that the final touches were being put on the bailout deal.
Banking stocks were among the best performers. The Stoxx Europe 600 Banks index was up 1.3pc and Greek bank shares also did well.
There was good news too in the bond markets, with yields falling in Italian and Spanish government bonds.
After considerable acrimony this week it is thought that the Greek bailout deal will be secured soon, with one eurozone official saying “we are almost there”.
“Unless someone really comes up with an idea to undermine the whole deal, it should be approved on Monday, added the official.
Karina Corbett