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More market optimism as Greek debt deal creeps closer

More market optimism as Greek debt deal creeps closer
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European stocks soared for a second day as the prospect of a deal between Greece and its creditors moved closer.

In Athens the share index rose a further 2.6 percent after Monday’s 9 percent increase.

Shares were up in France and Germany and the Nasdq and the Dow joined in the optimism after the recent gloom cast by the shadow of a Greek default.

Vangelis Agapitos, is a Greek economist:
“The markets will see this as a positive development because it removes certainly the short-term uncertainty as to whether Greece will run out of money, and also as to whether Greece will continue to fulfil its obligations. It seems that there is a will on both parties, Europe as well as Greece, to continue together.”

In Greece bank withdrawals slowed after the ECB increased its emergency liquidity assistance to Greek banks easing the sense of potential panic.

In spite of the possibility of a Greek debt deal the euro fell against the dollar, an indication that work was still to be done and the relative strength of the US economy.