New York---Signs of a potential breakthrough in talks between Greece and official creditors sparked a huge rally in European equity markets and a new record in the US.
The gains were biggest in Europe, where relief and hope greeted an eleventh-hour reform plan from Greece that raised confidence a Greek debt default could be averted at th end of the month.
The latest plan included key concessions from Athens on pensions and defense spending, although creditors say more movement is needed on tax provisions.
European Union President Donald Tusk said the offers were the "first real proposals for many weeks" from the Greek government.
"The most important thing is that the leaders take full responsibility for the political process to avoid the worst case scenario, which means uncontrollable, chaotic 'Grexident'," Tusk said, referring to the possibility of Greece leaving the euro.
In Europe, the CAC 40 in Paris jumped 3.81 percent to close at 4,998.61 points while Frankfurt's DAX 30 also gained 3.81 percent to stand to 11,460.50 points.
The Milan stock exchange won 3.46 percent, Madrid climbed 3.87 percent and the Athens Composite Index rocketed 9.0 percent.
London's benchmark FTSE 100 index rose 1.72 percent to end the day at 6,825.67 points.
Equity markets in the US also had a good day, with the tech-rich Nasdaq Composite vaulting to a fresh record.
"It looks like Greeks are going to give ground on actions on spending and it may just be enough to get to the finish line," said Alan Skrainka, chief investment officer at Cornerstone Wealth Management.
The Nasdaq jumped 0.72 percent to 5,153.97, besting its prior record by a substantial 21 points. The Dow Jones Industrial Average gained 0.58 percent to 18,119.78, while the broad-based S&P 500 advanced 0.61 percen to 2,122.85.
Asia's main markets also rose Monday on optimism for a Greek debt deal, with Tokyo up 1.26 percent, Seoul gaining 0.40 percent and Sydney adding 0.24 percent.
Hong Kong jumped 1.20 percent, while Shanghai was closed for a public holiday.
AFP
