European Stocks Advance Amid Speculation of Greek Loan Agreement

by Alan SoughleyInyoung Hwang

 

 

(Bloomberg) -- European stocks advanced to a seven-year high amid investor speculation that Greece and its euro-area creditors may reach a compromise agreement on its bailout.
The Stoxx Europe 600 Index added 0.6 percent to 379.14, the highest level since November 2007, at 8:43 a.m. in London. All 18 western European markets gained. Stocks were little changed on Tuesday as a rise in food and beverage makers offset a drop in Greek equities.
Greece may request an extension of its loan agreement for six months, according to a person familiar with the matter. Such a move would ease a standoff with creditors over the country’s future financing.

Prime Minister Alexis Tsipras’s government intends to make the request today, the person told reporters in Brussels, asking not to be named as the deliberations are private. Talks are continuing between Greece and its international creditors on the conditions that would be attached to the extension of the loan accord, the person said.
Greek stocks advanced after two days of declines, with the
ASE Index climbing 2.7 percent. National Bank of Greece SA and Piraeus Bank SA led gains, rising more than 7 percent.
Energy stocks and banks were among the biggest gainers out of 19 groups in the Stoxx 600 after Eni SpA and Credit Agricole SA posted results.
Eni rose 3.5 percent to the highest level since November. Italy’s largest oil company posted fourth-quarter operating profit of 2.32 billion euros ($2.6 billion), beating estimates of 1.9 billion euros.
Credit Agricole jumped 4 percent. France’s third-largest bank reported better-than-forecast fourth-quarter profit on higher earnings at the investment bank and lower provisions for doubtful loans.
Vivendi SA gained 1.6 percent. The French company received an offer of 3.9 billion euros for its 20 percent stake in Numericable-SFR from the cable company and Altice France.