Investing.com - European stocks closed higher Friday, on optimistic Greek bail out speculation.
After the close of European trade, the EURO STOXX 50 gained 1.16%, France's CAC 40 added 1.33%, while Germany's DAX gained 1.25%. Meanwhile, in the U.K. the FTSE 100 advanced 0.33%.
Euro zone finance ministers argued over how to best bail out Greece in last night’s conference call. Estimates that Greek debt would fall to 129% of gross domestic product by 2020, missing the 120% target casts fears over the viability of the proposed bail out.
However, optimism ruled as Greek’s sovereign lenders are considering charging lower interest rates to help the island nation avoid default.
France suggested that central banks simply take the losses in Greek bonds, but this idea has not gained any support.
A two step decision appears possible where a bond exchange is approved at the meeting next week, then completing the EUR130 billion public aid program. However, this would result in high political risk as two votes are required in some national parliaments.
Earlier, risk sentiment was spurred as U.S. initial jobless claims unexpectedly fell to their lowest level since March 2008 last week, declining to 348,000, and positively surprising expectations for an increase to 364,000.
An index of manufacturing activity in the Philadelphia area advanced more than expected in February, climbing to 10.2, beating expectations for an increase to 9.0.
In another economically bullish report, the U.S. Census Bureau stated the number of building permits issued in January rose 0.7% to a seasonally adjusted 0.68 million, broadly in line with market expectations.
Greek lenders surged higher on the optimistic speculation with Pireus Bank adding 14% and Alpha Bank surging 16%.
Strong fourth quarter income sent Aker Solutions soaring 19%, as the oil source company booked the biggest gain on the Stoxx 600.
Finmeccanica SpA advanced 14% on an Israeli military jet order.
In bearish news, Air Liquide gave back 3.5% on slowing sale growth.
During mid session U.S. trade, the Dow traded higher by 0.22%, the S&P 500 gained 0.01% and the Nasdaq gave back 0.47%.
After the close of European trade, the EURO STOXX 50 gained 1.16%, France's CAC 40 added 1.33%, while Germany's DAX gained 1.25%. Meanwhile, in the U.K. the FTSE 100 advanced 0.33%.
Euro zone finance ministers argued over how to best bail out Greece in last night’s conference call. Estimates that Greek debt would fall to 129% of gross domestic product by 2020, missing the 120% target casts fears over the viability of the proposed bail out.
However, optimism ruled as Greek’s sovereign lenders are considering charging lower interest rates to help the island nation avoid default.
France suggested that central banks simply take the losses in Greek bonds, but this idea has not gained any support.
A two step decision appears possible where a bond exchange is approved at the meeting next week, then completing the EUR130 billion public aid program. However, this would result in high political risk as two votes are required in some national parliaments.
Earlier, risk sentiment was spurred as U.S. initial jobless claims unexpectedly fell to their lowest level since March 2008 last week, declining to 348,000, and positively surprising expectations for an increase to 364,000.
An index of manufacturing activity in the Philadelphia area advanced more than expected in February, climbing to 10.2, beating expectations for an increase to 9.0.
In another economically bullish report, the U.S. Census Bureau stated the number of building permits issued in January rose 0.7% to a seasonally adjusted 0.68 million, broadly in line with market expectations.
Greek lenders surged higher on the optimistic speculation with Pireus Bank adding 14% and Alpha Bank surging 16%.
Strong fourth quarter income sent Aker Solutions soaring 19%, as the oil source company booked the biggest gain on the Stoxx 600.
Finmeccanica SpA advanced 14% on an Israeli military jet order.
In bearish news, Air Liquide gave back 3.5% on slowing sale growth.
During mid session U.S. trade, the Dow traded higher by 0.22%, the S&P 500 gained 0.01% and the Nasdaq gave back 0.47%.