Asian shares got the week off to a strong start and U.S. stock futures and the euro firmed on Monday, after Greece scrambled to avert defaulting on its debt with last-minute proposals aimed at appeasing its creditors. Financial spreadbetters expected the mood to carry over into early European trading, with Britain’s FTSE 100 .FTSE seen opening up as much as 0.2 percent, Germany’s DAX .GDAXI 0.7 percent and France’s CAC 40 .FCHI 0.4 percent.
“European equities are set to get a pop higher on the open as traders cautiously welcome developments in Greece,” Jonathan Sudaria, a dealer at Capital Spreads, said in a note. Many investors were still cautious about Prime Minister Alexis Tsipras’ proposals because it was not immediately clear how far they yielded to creditors’ demands for additional spending cuts and tax hikes, nor whether creditors can stomach the offer.
The chief-of-staff to European Commission President Jean-Claude Juncker sent a tweet calling the latest proposal from Greece to resolve its debt crisis a “good basis for progress” in talks at an emergency euro zone summit meeting later on Monday. “Today will supposedly be the last round of negotiations, so there could be a possible surprise in the form of an agreement with both parties seeing the writing on the wall,” said Shinichiro Kadota, chief Japan forex strategist at Barclays in Tokyo.