European Markets Expected Higher Thanks to Greece

European equities are expected to open higher on Wednesday as investors are calmed by the new Greek government’s attempts to placate its creditors.  The FTSE is seen higher by 21 points at 6,892, the German DAX up 29 points at 10,919 and the French CAC up 15 points at 4,692.

European markets are seen opening higher following new proposals from Greece over debt restructuring. Greece’s Finance Minister Yanis Varoufakis proposed a swap of outstanding debt for new growth-linked bonds on Monday. The proposals are a step back from Greece’s demands last week, just days into the new government, for a debt haircut that Europe has ruled out.

The next test for the proposals comes on Wednesday when Greek Prime Minister Tsipras meets with European Commission President Jean-Claude Juncker in Brussels.  After Varoufakis met Italian Prime Minister Matteo Renzi on Tuesday, Renzi said that although he wanted to help Greece, this didn’t mean he would always agree with the new Greek government led by Alexis Tsipras, Reuters reported.

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