22nd Jun 2015 09:29
LONDON (Alliance News) - Equity markets in London and Europe are surging mid-morning Monday, on hopes for a deal between Greece and its creditors ahead of an emergency summit in Brussels.
The FTSE 100 trades up 1.2% at 6,788.83, the FTSE 250 is up 0.5% at 17,797.38 and London's junior-market index, the AIM All-Share, is up 0.1% at 769.00.
In Europe, the CAC 40 in Paris is up 2.9% and the DAX 30 in Frankfurt is up 3.1%.
On Sunday, Greek Prime Minister Alexis Tsipras made new proposals to European leaders aimed at ending his country's debt crisis. EU cabinet chief Martin Selmayr said the new proposals from Greece have been received by EU Commission President Jean-Claude Juncker and provide a "good basis" for a special summit of eurozone leaders on Monday.
"Comments from Jean-Claude Juncker that Greece's new proposals are a 'basis for progress' were enough to ignite a rally across eurozone markets, with the FTSE 100 joining in too. Even after all these years, a last-minute deal that, in reality, merely kicks the problems further into the year still has the power to inspire an equity market rally," says Chris Beauchamp, senior market analyst at IG.
Juncker has since said Monday that whilst there has been progress on Greece over the weekend, "we are not yet there", adding that he does not know if there will be an agreement at the summit Monday.
The new reform proposals will be discussed at an emergency summit of euro zone leaders and finance ministers in Brussels, and if the Athens government does not reach a deal with creditors, it could spark acceleration in deposit withdrawals from Greek banks. Greek media reported on Saturday that between EUR1.7 billion to EUR2 billion flowed out of bank accounts in Greece on Friday alone.
On the London Stock Exchange, Carnival is the best performer in the FTSE 100, trading up 4.1% after Deutsche Bank upgraded it to Buy from Hold. The bank says it expects the second-quarter results from the cruiser operator to be above the upper end of the company's guidance. Carnival reports its second quarter results on Tuesday.
Sky shares trade up 3.4% after the Daily Telegraph reported on Saturday that the Murdoch family is understood to have rejected two bids for its stake in the broadcaster, stoking speculation that they intend to make a new attempt to take full control of the company.
Canadian investment giant Borealis Infrastructure is considering a GBP5 billion approach for Severn Trent, two years after the FTSE 100 water company rejected an earlier takeover attempt, The Sunday Times reported. The newspaper, citing "sources close to the situation", said it is understood that the two sides opened talks last month, and discussions are at an early stage with no certainty a deal. Severn Trent trades up 2.8%.
Precious metals miners Randgold Resources, down 1.5% and Fresnillo, down 0.6% are amongst the handful of FTSE 100 stocks which trade lower after the price of gold sunk below USD1,200 an ounce. Gold currently trades at USD1,195.35.
Spire Healthcare is by some distance the biggest gainer in the FTSE 250, trading up 7.8%. The private healthcare provider Spire Healthcare Group said the major shareholder in South Africa-based private hospital group Mediclinic has acquired a 29.9% stake in the company for GBP432 million. The shareholder, Remgro, has acquired the stake in Spire at 360 pence per share. Spire shares closed at 320 pence on Friday. Spire said the intention is for Mediclinic to acquire the stake in Spire from Remgro in the "near future". Mediclinic and Remgro have confirmed they have no intention to acquiring the rest of Spire.
Bwin.Party Digital Entertainment trades up 2.1% after it said it has agreed to sell its entire interest in World Poker Tour to Ourgame International Holdings for USD35 million in cash. FTSE 250-listed Bwin.Party said it will continue to sponsor a number of World Poker Tour events and television shows in the US and Europe until the end of December 2016, and will have first refusal on any sponsorship opportunities that could become available until the end of December 2016.
Still in the economic calendar, the Chicago Federal Reserve national activity index is at 1330 BST. At 1500 BST there are US existing home sales and preliminary eurozone consumer confidence data.
By Neil Thakrar; [email protected]; @NeilThakrar1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
SkySpirentRandgold ResourcesCarnivalFresnilloSevern TrentBPTY.L