Stocks Gain From Italy to Portugal as Two-Day Selloff Is ParedNamitha Jagadeesh and Roxana Zega
Equities rallied in European countries that bore the brunt of a two-day selloff following the Greek vote, with stocks in Italy and Portugal leading the way.
The FTSE MIB Index and the PSI 20 Index advanced at least 1.4 percent, rebounding from losses of 6 percent or more in the past two days. Spain’s IBEX 35 Index climbed 0.8 percent. The Euro Stoxx 50 Index added 1 percent to 3,327.5 at the close.
Greece said on Wednesday it intends to clear its debt arrears and asked for a new three-year loan from the euro area’s crisis fighting fund. The region’s leaders said the country’s government must accept a rescue package by Sunday or face expulsion from the euro.
“People are thinking that no matter what, we’ll have a solution on Sunday and we go back to normal,” said Stephane Ekolo, chief European strategist at Market Securities in London. “The market will depend on headlines for the rest of the week, but without any big news it will stay range-bound.”
The Greek stock market will remain shut until Friday. A U.S.-listed exchange-traded fund tracking the country’s shares slipped 1.9 percent.
The broader Stoxx Europe 600 Index rose less than 0.1 percent. A four-day decline took the gauge 9.98 percent below its April record yesterday.
U.K. homebuilders declined after Chancellor of the Exchequer George Osborne said the government will restrict mortgage-payment tax relief for landlords. Bellway Plc and Berkeley Group Holdings Plc tumbled at least 6.7 percent.
Drax Group Plc, the utility converting the biggest U.K. coal station to burning wood pellets, plunged 28 percent after Osborne said clean power won’t be exempt from a climate-change tax. Barclays Plc advanced 2 percent after saying chief executive officer Antony Jenkins will leave.
Carmakers fell the most among Stoxx 600 groups, with Renault SA and BMW AG declining at least 1.9 percent. A report showed China’s passenger-vehicle sales slumped in June.
(A previous version of this story deleted the incorrect timing of Portugal’s stock-market correction in the second paragraph.)