European markets soar on Greek deal hopes

Optimism returned to Europe on Monday June 22nd, with hope that the latest proposal from Greece would finally see a deal being forged.

Late on Sunday, news came that Greece had submitted a fresh proposal, which may contain compromises on key issues - particularly pensions. Markets in Europe surged on the news.

Germany’s DAX, the French CAC 40 and the Euro Stoxx 50 were all up more than three per cent by midday. Meanwhile, the main ATG index in Greece spiked nearly seven per cent higher in morning trading, with the country’s main bank shares surging over ten per cent.

Traders now await the outcome of the Eurogroup meeting today, but officials are warning not to expect an outcome yet, as there’s still time for discussions before the deadline expires on June 30th.

German chancellor Angela Merkel attempted to temper the surge of optimism, noting that there are still a number of days in which “decisions can be taken”.

Nevertheless, the fact that these proposals have already been more warmly received than previous attempts stokes hopes for a deal.