European stocks are rallying on reports that Greece has started crafting a “staff level accord” with its international bailout supervisors.
The Athens Composite traded 3.5 percent higher, while the pan-European FTSEurofirst 300 was up 1.1 percent. The euro also spiked on the news.
Bloomberg and Reuters reported that Greece and its bailout supervisors have started working on an “accord,” citing an unidentified official. This comes after months of battling between Greece far-left government and officials over an aid-for reforms deal.
According to Reuters, the unnamed official said that differences between the European Union and the International Monetary Fund were holding up a deal.
“The deadline we know is fast approaching and the assumption will be another can kick deal,” said Peter Boockvar, chief market analyst at The Lindsey Group, in an email sent on Wednesday.
“If there is none and Greece defaults, I honestly don’t know what the full repercussions will be at this point, as Greece is a political problem, not an economic one for the euro region.”