European stocks rise before Greece vote

GMT 13:46 2015 Wednesday ,15 July

Arab Today, arab today European stocks rise before Greece vote

European stocks
London - AFP

European stock markets and the euro rose Wednesday as Greece's parliament prepared for a key vote on its new bailout deal.

London's benchmark FTSE 100 index climbed 0.13 percent to 6,762.35 points in midday deals, as traders reacted also to Chinese economic data and awaited further clues for the outlook on US interest rates.

Frankfurt's DAX 30 gained 0.11 percent to 11,529.70 points and the CAC 40 in Paris won 0.13 percent to stand at 5,039.06 compared with Tuesday's close.

In foreign exchange, the euro increased to $1.1021 from $1.1008 late on Tuesday in New York.

"Clearly the most important thing today is the Greek vote on the bailout plan and the passing of the proposed reforms needed to secure bridging loans that will enable the country to avoid default," said Craig Erlam, senior market analyst Oanda trading group.

Greece on Wednesday geared up for a parliamentary vote on tough reforms demanded by eurozone creditors in exchange for a huge new bailout, in what could be Prime Minister Alexis Tsipras's most difficult political test yet.

The crucial vote comes hours after the International Monetary Fund issued a stark warning that Greece would need far more debt relief to stop it crashing out of the common currency than European governments have so far been willing to contemplate.

The last-ditch deal struck Monday saw Tsipras agree to sweeping changes to labour laws, pensions, VAT and other taxes -- many of which had been rejected by voters in a public referendum -- in exchange for new funds to keep Greece's struggling economy afloat.

The parliament in Athens must approve the deal before the 18 other eurozone leaders start negotiations over what Greece is to get in return: a three-year bailout worth up to 86 billion euros ($95 billion), its third rescue programme in five years.

"This really is a hugely important but difficult vote that is effectively a choice between three more years of painful austerity or a potentially brutal and messy Greek exit from the eurozone," said Erlam.

Europe's leading stock markets had risen the previous two days after the Greek deal had been reached in the early hours of Monday.

Asian stock markets mostly advanced Wednesday after data showed China's economy grew more than expected in the second quarter, although Shanghai and Hong Kong sank on fears the news will likely put off any fresh growth-boosting measures.

Investors were awaiting testimony later in the day from US Federal Reserve chief Janet Yellen on the bank's plans for hiking interest rates.


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