European markets cheer Greece's bailout plan
Headlines from Bloomberg on Thursday evening characterized this plan as similar to the European Commission's plan presented on June 26. Essentially, this suggests that this "new" plan is more likely to be approved by Greece's European creditors because they came up with the plan in the first place.
The FTSE 100 is up nearly 1% as British blue chip stocks expect a deal. As you'd expect, companies with the most exposure to Greece are doing the best right now. For example, shares in Vodafone are up over 2.5% as it owns the country's second largest mobile services provider. Meanwhile, travel group TUI is up 1.5% because it has around 40 Greek hotels contributing 17% to its overall portfolio.
"A deal would no doubt stabilise Greece in the short to medium term, which is of course good in that time frame," said Augustin Eden, analyst at Accendo Markets in a market update note this morning. "However, no deal and subsequent short to medium term instability (if survived) would be good in the long term, maybe even great. It remains to be seen whether the Greeks are viewing things through a microscope or a telescope."
Germany's DAX is up over 1.7% while France's CAC 40 and Spain's IBEX is way above a 2% rise. Italy's FTSE MIB is also up nearly 2%.
