European stocks mostly higher awaiting Greece deal

European stocks mostly higher awaiting Greece deal

European stock markets mostly climbed on Monday awaiting the latest Greek bailout agreement, but London wilted as more poor Chinese data hit heavyweight miners.

London's benchmark FTSE 100 index dropped 0.77 percent to stand at 6,666.59 points approaching midday in the capital.

In the eurozone, Frankfurt's DAX 30 climbed 0.21 percent to 11,515.63 points and the CAC 40 in Paris won 0.18 percent to 5,163.78 compared with Friday's close.

In foreign exchange, the euro dipped to $1.0960 from $1.0962 late on Friday in New York.

"The weakness in China has not gone unnoticed… with the FTSE underperforming other European indices," said Brenda Kelly, head analyst at London Capital Group.

Shares in oil majors were also hit as world crude prices hit fresh lows.

In late morning deals on the FTSE, Tullow oil was down 3.28 percent to 221 pence and miner Anglo American shed 2.42 percent to 781.10 pence.

China's foreign trade performance worsened in July with both exports and imports falling more than eight percent on an annual basis, data revealed on Saturday.

Consumer inflation meanwhile accelerated slightly to 1.6 percent in July, compared with 1.4 percent in June, official data showed on Sunday, although analysts warned the slow rise in prices is still a risk for China's economy.

But Shanghai's main index closed up almost five percent Monday on speculation of a merger between two major state-owned shipping enterprises, offsetting the weak Chinese economic figures released over the weekend, dealers said.

In the eurozone, Greece and its creditors were to continue talks Monday after marathon discussions late into the night, with both sides indicating that the terms of a third bailout were close to being finalized.

They are finalizing the draft of a crucial new bailout of up to 86 billion euros ($94 billion) in exchange for further reforms before the debt-ridden country must repay 3.4 billion euros to the European Central Bank on August 20.

Germany warned that negotiations must emphasize "thoroughness over speed", appearing to throw cold water on Greek optimism for a quick deal.

"The Athens officials are quite hopeful about achieving the third bailout, but traders don’t share their optimistic outlook," said David Madden, market analyst at IG trading group.

Europe's main stock markets had meanwhile edged down on Friday as investors digested disappointing data out of the eurozone, a mixed US jobs report and the likelihood of an imminent US interest rate rise.


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