European stock markets have opened with strong gains as Greece appears on course to end a five-month stand-off with its bailout lenders. Asian markets and the euro also rallied amid hopes for an aid-for-reforms deal.
In Frankfurt, the German blue-chip DAX soared 3.14 percent to stand at 11,386.84 points in late morning deals and the CAC 40 in Paris jumped 3.04 percent to 4,961.92 points. Madrid's IBEX 35 won 2.60 percent to 11,228.40 points and Athens' main index rocketed 7.64 percent to 739.81. Outside the eurozone, London's benchmark FTSE 100 index won 1.27 percent to 6,795.98 compared with Friday's close.
"Despite a lack of detail and multiple previous failures, European markets are rallying on expectations that a Greek resolution may finally be reached," Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor, told the news agency AFP.
European shares rallied after French Finance Minister Michel Sapin hailed the "quality" work in Athens' latest proposals to end Greece's debt crisis, hours before European leaders were to hold an emergency summit on the issue.
"I see the work that has been done. It is quality work," Michel Sapin told French radio Monday morning. "A deal requires both sides to evolve. This work is underway and is being undertaken in good conditions."
Earlier, the office of European Commission President Jean-Claude Juncker said the proposals, which the Greek premier detailed in a phone call with German, French and EU leaders, offered "a good basis for progress."
Asian shares, euro edge higher
Asian shares also got the week off to a strong start and US stock futures and the euro firmed, after Greece scrambled to avert defaulting on its debt with last-minute proposals aimed at appeasing its creditors.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.8 percent after touching a more than two-week high, while Japan's Nikkei stock index added 0.9 percent.
In Asia, Chinese mainland markets were closed on Monday for a holiday, after posting their biggest weekly loss since 2008 last week.
The Single European Currency ticked up about 0.4 percent to $1.1393 against one euro, moving back toward a one-month high of $1.1440 hit on Thursday. Crude oil futures edged slightly higher amid caution about Greece, and worries over high U.S. oil production.
Despite the gains on global financial markets, investors remain cautious about whether or not the Greek proposals fully meet creditors' demands for additional spending cuts and tax hikes. If no deal is reached at a crunch summit of EU leaders Monday evening, the government in Athens might be forced to impose capital controls on Tuesday to avert a banking crisis as savers keep withdrawing funds from banks.
uhe/tko (Reuters, dpa, AFP)