European stocks soared on Monday, while the euro was relatively unchanged, as investors turned their attention to the European Union ministerial meetings concerning Greece’s bailout saga.
Europe’s major stock indices surged across the board on Monday on optimism that Greece and its EU counterparts would reach a new bailout agreement in the coming days. The FTSE 100 Index in London soared 1.1% to 6,786.41. Frankfurt’s DAX Index climbed 2.7% to 11,342.50, while the CAC 40 Index in Paris rose 2.6% to 4,942.59.
Meanwhile, the euro was little changed after falling below 1.1400 US at the end of last week. The EUR/USD slipped 0.1% to 1.1361 after briefly retaking 1.1400 in intraday trade. The EUR/USD was likely to face resistance at 1.1405. On the downside, initial support is likely found at 1.1295.
The euro rallied against its British counterpart, as the EUR/GBP advanced 0.5% to 0.7179. The pair is testing the 0.7176 resistance. On the downside, initial support is likely found at 0.7122.
EU finance ministers kicked off an emergency meeting on Monday in what many analysts have described as a final attempt to secure bailout funding for Greece. EU ministers were skeptical that a deal would be reached by Monday after reports circulated that Athens initially sent the wrong proposal to creditors on Sunday.
German finance minister Wolgang Schauble said EU leaders may not have enough time to prepare for today’s emergency meeting.
“We haven’t received any substantial proposals until now,” Schauble said on Monday. “I can’t see how we can be able to prepare the euro summit without proposals. It’s not possible to prepare a statement for the euro summit, the status hasn’t changed since Thursday.”
Greece has until the end of June to reach a new bailout accord with creditors or risks defaulting on its massive loan package. Athens withheld a payment to the International Monetary Fund earlier this month, opting instead to package its June payments into one payment at the end of the month.
Greece’s banking system is on the brink of collapse after billions of euros were withdrawn last week. According to analysts, the run on Greek banks is expected to continue until depositors are confident that a new bailout agreement was on the table.