| Log In | Register Now
By Blaise Robinson
February 17, 2012 3:35 PM EST
European stocks rallied on Friday, with a key index hitting a level not seen since before the market's early August nosedive, fuelled by renewed expectations of a bailout deal for Greece that would further ease tensions over the euro zone debt crisis.
The FTSEurofirst 300 <.FTEU3> index of top European shares closed 0.6 percent higher at 1,083.22 points, led by shares of euro zone lenders among the most exposed to the Greek crisis such as Societe Generale
The index has gained 1.8 percent on the week, posting a fifth weekly gain for the year.
Debt-troubled Greece seemed to be edging closer to an agreement for a new rescue package that would allow the country to begin a debt swap with private bondholders and avoid a messy default, though nothing was announced on Friday.
"No Greek news is good news," said Peter Garnry, equity strategist at Saxo Bank in Copenhagen.
Follow us
"Investors seem to be positioning for a deal on Greece which would lift uncertainty in the short term."
Expectations that an agreement could be struck before a meeting of euro zone finance ministers on Monday fuelled a rally in stocks of euro zone peripheral countries, with Greece's ATG index <.ATG> surging 5 percent, Spain's IBEX <.IBEX> up 1.2 percent and Italy's FTSE MIB <.FTMIB> adding 1.1 percent.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Asset returns in 2012:
http://link.reuters.com/nyw85s
Euro zone debt crisis in graphics:
http://r.reuters.com/hyb65p
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
The euro zone's blue-chip Euro STOXX 50 <.STOXX50E> index ended 1.2 percent higher at 2,520.31 points, moving back into its two-month ascending channel after breaking below the lower band of the channel during Thursday.
We value your privacy. Your email address will not be shared.
