European markets rise sharply on Greece hopes

 
Emma Haslett
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Markets rallied for the first time this week (Source: Getty)

Stocks in Europe rebounded today as a glimmer of hope emerged that Greece may reach a deal with its creditors.

Read more: Ryanair boss calls Greek government "a bunch of lunatics"

Portugal's PSI 20 led the rise, jumping 3.7 per cent, while France's Cac climbed 2.4 per cent and the Dax rose two per cent. In the UK, the FTSE 100's rise was slightly weaker, with the index rising 1.5 per cent in mid-afternoon.

Across the pond, the S&P 500 opened 1.3 per cent higher, while the Dow Jones rose 1.4 per cent.

The news came as Greece prepared to provide more detail on its latest bailout proposals, which it presented to the IMF yesterday.

Earlier, European Council president Donald Tusk told a Dutch paper that Europe had allowed its negotiations with the ECB to go on for too long.

Read more: Greek unemployment remains about 25 per cent as crisis escalates

"The playing field was elastic," he told NRC.

He also suggested the referendum had weakened Greek Prime Minister Alexis Tsipras' position in negotiations.

"If [Tsipras] still wants EU emergency aid, he must make proposals that go against the logic of the referendum."

German finance minister Wolfgang Schaeuble also commented on the negotiations.

"A monetary union constructed like ours is nothing but an invitation for somebody that doesn't stick to the rules and that's called moral hazard," he said.

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