By Barbara Kollmeyer, MarketWatch
European stocks closed higher on Monday, joining a global equity rally as investors grew optimistic ahead of a week that includes a major U.S.-China trade meeting and a gathering of global central bankers.
Where are the major benchmarks trading?
The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +1.75% rose 0.6% to 383.23. The move represents something of a modest rebound from recent losses, coming after a bruising 1.2% decline last week, its third straight weekly fall. Recent losses have been pegged to concerns over Turkey’s currency crisis and sluggish commodity prices.
Germany’s DAX 30 /zigman2/quotes/210597999/delayed DX:DAX +2.44% closed up 1% to 12,331.30, its biggest one-day percentage gain since July 26. The index is coming off its third straight down week, its longest such stretch since February.
Greece’s ATHEX Composite Share Price Index /zigman2/quotes/210597948/delayed GR:GD +1.67% rose 0.3% to 712.61.
Italy’s FTSE MIB Index /zigman2/quotes/210598024/delayed IT:I945 +1.68% closed up 0.3% to 20,470.97.
The euro /zigman2/quotes/210561242/realtime/sampled EURUSD +0.2321% rose slightly against the dollar, changing hands at $1.1447, compared with $1.1438 late Friday in New York.
What’s driving the market?
An eight-year-long Greece bailout drama officially came to an end on Monday, with European Commission Vice President Valdis Dombrovskis congratulating Greece for emerging from out of the EU’s stability program. However, he also said the country needs “build on this achievement by sticking to sound fiscal and economic policies.”
But while Greece may have been viewed as a positive, albeit long expected, the region could remain volatile amid worries about Italy’s economic and political situation. The single-currency bloc will face a big test this autumn when the new Italian government must present a budget. Italian banks fell in early trading, but they subsequent recovered off their lows of the day. Banco BPM SpA /zigman2/quotes/204236087/delayed IT:BAMI +0.07% ended down less than 0.1% and Unione de Banche Italiane SpA /zigman2/quotes/200732627/delayed IT:UBI -0.42% rose 0.7%.
Trade optimism lifted global equities, with U.S. stocks trading near multimonth highs. A report in The Wall Street Journal on Friday said negotiators on both sides are mapping out talks aimed at resolving major differences by November.