By Carla Mozee, MarketWatch
European stocks narrowed losses Friday following reports that
Greece's creditors were ready to offer the country a five-month
bailout extension.
But investors remained cautious ahead of a meeting Saturday
aimed at steering Greece away from default.
The Stoxx Europe 600 was down 0.2% to 395.52, with only the
consumer-services sector moving higher. The index had been down by
as much as 0.8% intraday.
European stock indexes began to pare losses and in some cases
turned higher in afternoon dealings. A note in preparation for the
Eurogroup of eurozone finance ministers said the eurozone could
help Greece repay maturing debt if the country's current bailout
program is extended to November, according to a Reuters report.
Greece's Athex Composite was off 0.2% at 780.44 after being down
by more than 1% earlier in the session. Greek government bond
prices remained higher, pulling down the yield on 2-year debt by 53
basis points to 20.79%, according to Tradeweb. The yield on 10-year
bonds fell 9 basis points to 10.68%.
Germany's DAX 30 reversed course and swung up 2 points to
11,475.42, and France's CAC 40 turned 0.5% higher to 5,064.58.
In Madrid, Spain's IBEX 35 moved up 0.4% to 11,356 and Italy's
FTSE MIB ticked up 0.1% 23,664. The U.K.'s FTSE 100 was off 0.5% at
6,769.
Cash-strapped Greece needs an economic-reform deal in place
before it can tap a new round of bailout funds. If Greece misses a
EUR1.5 billion ($1.68 billion) debt repayment due Tuesday to the
International Monetary Fund, the Hellenic nation will immediately
be in arrears
(http://www.marketwatch.com/story/imf-greece-would-immediately-be-in-arrears-if-it-misses-june-30-payment-2015-06-25)
on its debt to the institution, the IMF warned Thursday.
Greece's creditors have said they want a deal in place
(http://www.theguardian.com/business/2015/jun/25/weekend-deadline-greece-after-negotiations-draw-blank)
before markets open on Monday. Greek pensions, sales taxes and
military spending are major areas of disagreement. Eurozone finance
ministers were tasked to bridge the gap between the proposals from
Greece and its creditors when they meet Saturday. German Chancellor
Angela Merkel said that gathering should have "decisive
significance."
(http://www.marketwatch.com/story/greek-deal-talks-at-weekend-will-have-decisive-significance-says-merkel-2015-06-26)
In corporate news, shares of K&S AG (SDF.XE) rallied 30%
after Canada's Potash Corp. (POT) (POT) proposed a takeover
(http://www.marketwatch.com/story/ks-says-potash-has-submitted-acquisition-proposal-2015-06-25-16485272)
of its fertilizer-business rival.
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