European Stocks Rise Amid Greek Deal Optimism, U.S. Factory Data

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European shares were little changed as investors watched developments in Greek debt talks. Health-care shares rose, while commodity producers fell.

The Stoxx Europe 600 Index climbed 0.2 percent to 400.57 at the close of trading, having risen as much as 0.9 percent. It extended gains intraday after data showed U.S. manufacturing expanded more in May than forecast, before paring the advance in the final half an hour of trading.

Stocks also climbed earlier after a European Union official said a Greek financing deal is possible by the end of the week. Greece has to make four payments totaling almost 1.6 billion euros ($1.75 billion) to the IMF in June. Before that, the Stoxx 600 trimmed gains as a report showed factory output in the region grew less than initially estimated.

“We’re looking at a very volatile period over the next few days with Greek news dominating,” said Guillermo Hernandez Sampere, who helps manage about 150 million euros at MPPM EK in Eppstein, Germany. “There’s this never-ending Greek story getting in all our heads.”

Drugmakers were among the best performers in Stoxx 600 industry groups on Monday, with Roche Holding AG up 1.3 percent after positive updates on cancer drugs. Miners fell for a third day, while energy shares followed oil prices lower.

Last Week

Europe’s benchmark gauge slid 1.9 percent last week, trimming its monthly advance to 1 percent, as concern grew that Greece will fail to strike a deal with its creditors, and that the U.S. economic recovery is faltering. The Stoxx 600 closed 3.4 percent away from its April record.

Even amid the uncertainty, Greece’s ASE Index posted its first back-to-back monthly gains in more than a year and investors kept pouring money into a fund tracking the shares, sending its market value to a record. The nation’s stock market was closed today for a holiday.

Deutsche Annington Immobilien SE jumped 5.9 percent after Germany’s largest publicly traded owner of homes raised its 2015 profit forecast. Lloyds Banking Group Plc added 1 percent after the U.K. government said it will sell shares in the lender to individual investors over the next year.

Plus500 Ltd. climbed 1.2 percent as online gaming company Playtech Plc agreed to buy the British trading platform whose anti-money-laundering safeguards have come under scrutiny by regulators.

Vestas Wind Systems A/S slid 4.8 percent after Citigroup Inc. lowered its rating on the stock, recommending investors sell it because of concerns over its subsidy scheme in the U.S.

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