NEW YORK (AP) – U.S. stocks are opening higher on speculation that Greece will be able to forge a deal with creditors this weekend to secure its future in the euro. Investors were also encouraged by a second day of gains in China’s stock market, suggesting that the government has managed to stem a market rout.
KEEPING SCORE: The Standard & Poor’s 500 index rose 20 points, or 1 percent, to 2,072 as of 10:03 a.m. Eastern time. The Dow Jones industrial average climbed 186 points, or 1.1 percent, to 17,734. The Nasdaq composite gained 55 points, or 1.1 percent, to 4,978.
GREEK BREAKTHROUGH? Greece and its creditors appeared to be narrowing their differences after Athens offered reform proposals in order to secure a third bailout of around 53 billion euros ($59.5 billion). The proposals, which included around 13 billion euros worth of austerity measures, have so far met with a positive response. French President Francois Hollande described them as “credible.”
Representatives from the European Commission, European Central Bank and International Monetary Fund are assessing the proposals. If Greece fails to win the support of creditors for a new bailout, the country faces bankruptcy and an exit from the euro. The eurozone’s finance ministers are due to meet on Saturday, and their verdict will go a long way to determining the fate of Greece.
EUROPE’S DAY: Germany’s DAX surged 2.6 percent while the CAC-40 in France jumped 3.1 percent. The U.K.’s FTSE 100 index rose 1.4 percent.