By Carla Mozee, MarketWatch
European stocks turned higher Friday following reports that
Greece's creditors were ready to offer the country a five-month
bailout extension.
But Greek and European leaders still have a meeting ahead of
them on Saturday aimed at steering Greece away from the fiscal
precipice.
The Stoxx Europe 600 was up 0.3% to 397.55, with only the
consumer-services sector moving higher. The index had been down by
as much as 0.8% intraday.
European stock indexes began to pare losses and in some cases
turned higher in afternoon dealings. Greece's creditors are
planning to extend
(http://www.marketwatch.com/story/greeces-lenders-plan-five-month-bailout-extension-reports-2015-06-26)
the debt-laden country's bailout program by five months and release
rescue funds of 15.5 billion euros ($17.38 billion), media reports
said on Friday. The Guardian reported that documents, which would
grant Greece an extension, were handed to eurozone finance
ministers on Thursday, and will be reviewed before the group
convenes for an extraordinary meeting on Saturday.
Greece's Athex Composite was up 2% at 797.439 after being down
by more than 1% earlier in the session. Greek government bond
prices remained higher, pulling down the yield on 2-year debt by 78
basis points to 20.55%, according to Tradeweb. The yield on 10-year
bonds fell 18 basis points to 10.59%.
Germany's DAX 30 reversed course and swung 0.6% higher at
11,551.04, and France's CAC 40 turned 0.9% higher to 5,086.08.
In Madrid, the IBEX 35 moved up 0.9% to 11,415 and Italy's FTSE
MIB gained 0.7% to 23,794.55. The U.K.'s FTSE 100 was off 0.3% at
6,786.69.
Cash-strapped Greece needs an economic-reform deal in place
before it can tap a new round of bailout funds. If Greece misses a
EUR1.5 billion ($1.68 billion) debt repayment due Tuesday to the
International Monetary Fund, the Hellenic nation will immediately
be in arrears
(http://www.marketwatch.com/story/imf-greece-would-immediately-be-in-arrears-if-it-misses-june-30-payment-2015-06-25)
on its debt to the institution, the IMF warned Thursday.
Greece's creditors have said they want a deal in place
(http://www.theguardian.com/business/2015/jun/25/weekend-deadline-greece-after-negotiations-draw-blank)
before markets open on Monday. Greek pensions, sales taxes and
military spending are major areas of disagreement. Eurozone finance
ministers were tasked to bridge the gap between the proposals from
Greece and its creditors when they meet Saturday. German Chancellor
Angela Merkel said that gathering should have "decisive
significance."
(http://www.marketwatch.com/story/greek-deal-talks-at-weekend-will-have-decisive-significance-says-merkel-2015-06-26)
In corporate news, shares of K&S AG (SDF.XE) rallied 31%
after Canada's Potash Corp. (POT) (POT) proposed a takeover
(http://www.marketwatch.com/story/ks-says-potash-has-submitted-acquisition-proposal-2015-06-25-16485272)
of its fertilizer-business rival.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires