By Tommy Stubbington
European stocks rebounded Monday after Greece reshuffled its
team for bailout negotiations with creditors.
Markets had opened lower, after Friday's summit of eurozone
ministers ended in deadlock, but picked up in the afternoon while
Greek bonds rallied.
The Stoxx Europe 600 was 0.6% higher early afternoon, building
on the previous week's gains.
The confrontation between Athens and its creditors has weighed
on markets over the past two weeks, although weakness has generally
been short-lived, with shares not far below their recent record
highs.
The latest bout of relief came after the shift in Athens'
negotiating team, which may reduce the influence outspoken Greek
Finance Minister Yanis Varoufakis has on the slow-moving
negotiations.
Greek bond yields, which had risen earlier in the session,
declined. The two-year yield fell by more than a percentage point
to 24.3%.
Spanish and Italian yields fell. Yields fall as prices rise.
Still, Greek yields remain at levels that indicate investors are
worried about a default.
Time is growing short; loans that Greece owes to the
International Monetary Fund fall due in early May.
"Tensions continue to rise as Greece's looming payments to
creditors come due," said analysts at Rabobank.
In equity markets, Volkswagen AG was among the top risers
following the departure of Chairman Ferdinand Piech.
Deutsche Bank shares fell after the lender reported on Sunday a
sharp fall in first-quarter profit, weighed down by a record fine
to settle rate-rigging allegations.
Tesco extended recent declines after the supermarket giant's
credit rating was cut to junk territory by Fitch on Friday.
Germany's DAX shrugged off small early losses to climb 1.4%,
France's CAC 40 rose 0.7%, while the U.K.'s FTSE 100 advanced
0.5%.
In the U.S., stock futures indicated a 0.2% opening gain for the
S&P 500. Changes in futures aren't necessarily reflected in
market moves after the opening bell.
In currency markets, the euro fell 0.4% against the dollar to
$1.0825. The British pound also slipped 0.4% against the buck to
$1.5128.
In commodities markets, Brent crude oil was down 0.5% at $64.98
a barrel while gold climbed 0.8% to $1,184.60 an ounce.
Write to Tommy Stubbington at tommy.stubbington@wsj.com
Access Investor Kit for Volkswagen AG
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=DE0007664005
Access Investor Kit for Volkswagen AG
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=DE0007664039
Access Investor Kit for Volkswagen AG
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US9286623031