European stocks advanced amid investor optimism that Greece and its creditors can work out a bailout deal and keep the Mediterranean nation in the euro area.
The Stoxx Europe 600 Index rose 1.5 percent to 387.07 at the close of trading. It earlier climbed as much as 2.2 percent after Greek Prime Minister Alexis Tsipras signaled he’s prepared to compromise on the starting point for talks. Shares trimmed gains after he reiterated his call for voters to reject austerity measures in Sunday’s referendum.
Greece has already missed a $1.7-billion payment to the International Monetary Fund, after previous proposals to creditors were rebuffed.
Three days of capital controls, rationing pensions and the expiry of its bailout pushed the Greek government to say it’s willing to accept creditors’ latest offer as a basis for compromise. Sunday’s referendum remains a stumbling block, along with disagreements over pensions, spending and taxes. Tsipras called for voters to reject austerity measures to help strengthen the government’s negotiating position.
Source : Bloomberg