European stocks posted their biggest four-day rally since January as the region leaders agreed Greece government was getting serious about reaching a deal.
The Stoxx Europe 600 Index rose 1.2 percent to 398.83 at the close of trading. A report showed euro-area factory and services expanded more than forecast in June, signaling a pickup in the region economy amid quantitative-easing measures by the European Central Bank.
European leaders agreed to step up talks and gave the country government 48 hours to make the final push to win aid. Shares jumped yesterday after Greece proposed a new set of reforms. The plans represent a step forward, German Chancellor Angela Merkel said last night. The ASE Index climbed 6.1 percent on Tuesday, completing its best four-day gain since February.
Among shares active on corporate news, Air France-KLM Group climbed 2.1 percent after the Dutch government said it could buy shares of the company if necessary to help combat competition from low-cost and Middle Eastern airlines. Ladbrokes Plc jumped 15 percent after the betting company confirmed it’s in merger talks with Gala Coral Group Ltd.
Petrofac Ltd. surged 6.2 percent after reporting backlog at record levels and saying profit will be heavily weighted toward the second half of the year. Berenberg Bank had said last week the company may issue a profit warning. Transocean Ltd. climbed 3.8 percent after saying the value of new contracts since its May report totaled about $109 million.
Source : Bloomberg