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European markets rebound as Greece works on new reform package


European markets rebound as Greece works on new reform package


European stock markets have recovered somewhat from the shock of a ‘no’ vote in Greece’s referendum at the weekend.

After two days of losses, stocks rebounded on Wednesday as Athens was given more time to formulate a new reform package to present to creditors.

But some analysts warned of severe consequences for investors if an final agreement isn’t reached quickly.

Capital markets strategist Oliver Roth said: “A Grexit hasn’t really been taken into consideration. There are a lot of optimists who still believe that the Europeans will build a bridge the Greeks will or can cross. But it must be clear that if there is a Grexit, the markets will feel considerable consequences. We can count on massive losses.”

Another analyst said there was relief among traders that the Greek question may well come to an end this weekend one way or another.

London, Frankfurt and Paris were up half a percent at lunchtime while Milan increased nearly 1 and half percent.

British bank Barclays and Swiss pharmaceuticals group Novartis were among the best performers, with investors welcoming Barclays’ decision to dump its chief executive while Novartis got a boost from regulators.

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