European stocks rise on Greek aid talk

By Grace Wong, contributing writer


LONDON (CNNMoney.com) -- European shares held gains early Friday following news that Greece may soon be getting the aid it so desperately needs.

In morning trading, Britain's FTSE 100 added 0.77%. The CAC 40 in France gained 0.42% and Germany's DAX jumped 1.2%. Markets had been slightly higher ahead of the news from Greece, lifted by encouraging economic news from Germany.

A report showing the business climate in Germany improving for a second month in a row lifted sentiment in the region.

The upbeat reading of the Ifo Business Climate survey in April helped offset earlier concerns about Greece's debt burden.

Early Friday, Greek Prime Minister George Papandreou formally asked for the activiation of the European Union/International Monetary Fund loan package.

Fears that Greece would miss its May 19 deadline for refinancing €8.5, or about $11.4 billion in debt, grew Thursday after Moody's cut its bond rating on Greece and a separate report showed that Greece's deficit may be worse than previously estimated.

The move sent Greek bond prices in a tailspin, raising the yield on the country's benchmark 10-year bond to a record of 8.8%. Bond prices and yields move in opposite directions. The yield on the Greek 10-year bond edged off its record highs following the news, dipping to 8.02%.

Worries that Greece might default on its debt have weighed on global markets in recent months. Investors fear that if that happens, Greece will be forced to seek a bailout.

Asian stocks fell back Friday. Hong Kong's Hang Seng index dropped nearly 1%. Japan's Nikkei ended the session 0.3% lower and the Shanghai Composite fell 0.5%.

U.S. stocks tumbled Thursday after Moody's downgraded Greece's bond rating but staged a comeback in the afternoon and managed to finish the session with slim gains. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.85%3.81%
15 yr fixed2.97%2.91%
5/1 ARM3.38%3.09%
30 yr refi3.85%3.81%
15 yr refi3.01%2.99%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 17,387.21 -291.49 -1.65%
Nasdaq 4,681.50 -90.27 -1.89%
S&P 500 2,029.55 -27.54 -1.34%
Treasuries 1.82 -0.00 -0.16%
Data as of 7:41am ET
Company Price Change % Change
Microsoft Corp 42.66 -4.35 -9.25%
Apple Inc 109.14 -3.96 -3.50%
Bank of America Corp... 15.63 -0.22 -1.39%
Intel Corp 34.18 -1.62 -4.52%
Cisco Systems Inc 26.90 -1.07 -3.83%
Data as of Jan 27

Sections

After 123 straight days of gas price declines, the price of gas edged higher on Tuesday and stayed level on Wednesday. More

Neon is a major trend in sports uniforms, because young fans are more likely to buy clothing with fluorescent colors. More

On demand delivery startup WunWun is expecting its order volume to double by the time they close up shop on Monday. All thanks to a blizzard. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2015 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2015. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2015 and/or its affiliates.