A Greek stock rally sent European shares higher as the nation reshuffled its bailout-negotiating team.
The Stoxx Europe 600 Index rose 1 percent to 412.42 at the close of trading. Greece limited the role of Finance Minister Yanis Varoufakis in talks with creditors after euro-area counterparts criticized him at a meeting on Friday, when they refused to disburse more aid until terms are met.
Europe’s benchmark gauge reversed losses of as much as 0.7 percent after Bild reported Greek Prime Minister Alexis Tsipras is willing to suspend minimum-wage plans and make other changes to reform proposals. Greek stocks jumped the most in two months amid signs of compromise before its payments due to pensioners and state employees this week, and to the International Monetary Fund on May 6.
“Stocks quickly reacted to news that Tsipras is willing to abandon one of his pre-election pledges,” said Ramiro Loureiro, a Lisbon-based market analyst at Banco Comercial Portugues SA’s Millennium unit. “Markets clearly see this as a sign that Greece is moving closer to the euro group.”
National Bank of Greece SA and Alpha Bank AE surged more than 8 percent, pushing the ASE Index up 4.4 percent.
HSBC Holdings Plc contributed the most to gains on the Stoxx 600, rising 3.1 percent after a report that it’s considering spinning off its U.K. retail bank for about 20 billion pounds ($30 billion). Volkswagen AG pushed carmakers to the best performance among Stoxx 600 groups, up 5.3 percent after its chairman resigned from all his posts.
Cap Gemini SA surged 7.9 percent after agreeing to buy Igate Corp. for about $4 billion in cash. Mediaset SpA climbed 8.2 percent as a report said Vivendi SA is studying a purchase of the Italian broadcaster and a controlling stake in French film producer EuropaCorp., which soared 20 percent.
Swedish Orphan Biovitrum AB surged 19 percent after the maker of drugs for rare diseases said it’s reviewing a preliminary takeover offer. Sandvik AB climbed 9.5 percent after the Swedish industrial group said currency effects will boost second-quarter profit by about 900 million kronor ($104 million).
Deutsche Bank AG tumbled 4.6 percent after scrapping a profitability goal for next year and setting a lower target in the medium term.
The Stoxx 600 increased 1.2 percent last week amid corporate earnings and gains in mining shares after China boosted stimulus measures. The gauge has surged 20 percent in 2015 and last reached a record on April 15.
(A previous version of this story corrected the name of Swedish Orphan.)