European markets bouyed by slight optimism
European markets gained ground Tuesday for the third day in a row ahead of Wednesday’s meeting of European leaders to discuss Europe’s bailout fund, the second summit in four days.
The Stoxx Europe 600 Index rose 0.2 percent to 242.61 in London in early trading. In addition to optimisim that European nations may reach a deal on the rescue fund, investors are also expecting strong earnings reports from companies that make up the index.
According to Bloomberg, 18 companies in the Stoxx 600 are reporting results today and investors are forecasting an average increase in profits of at least 13%.
The Stoxx 600 has rallied for four straight weeks, its longest stretch of gains since December.
Investors are hoping that eurozone political leaders will soon find a solution to the crisis that has Greece on the edge of a default.
European policy makers are haggling with banks over the size of losses they will likely take on Greek bonds, while deliberating over increasing the fund after ruling out tapping the European Central Bank’s balance sheet.
Source:Europe News.Net
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