A roundup of trading on major world markets:
NEW YORK – The Nasdaq has ploughed to a fresh record as US stock markets followed European equity markets higher on increased optimism for a deal that could avert a Greek default.
The tech-rich Nasdaq Composite Index was at 5,153.97, up 36.97 points (0.72 per cent) on Monday, beating the prior record set June 18 by 21 points.
The Dow Jones Industrial Average rose 103.83 points (0.58 per cent) to 18,119.78, while the broad-based S&P 500 advanced 12.86 points (0.61 per cent) to 2,122.85.
Earlier, equity markets in Europe surged after eleventh-hour reform proposals from Greece to international creditors lifted hopes of a deal. European Union President Donald Tusk said the offers were the “first real proposals for many weeks” from the Greek government.
“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.
Health insurer Cigna bolted 4.7 per cent higher as it rejected as “inadequate” a bid from the nation’s number-two insurer Anthem. Anthem estimated the deal was worth $US53.8 billion ($A69.24 billion), including debt. Anthem rose 3.6 per cent.
Aetna, another leading insurer seen as a possible merger partner, gained 3.2 per cent. But Humana fell 6.1 per cent as some analysts worried Humana could be left without a merger partner amid a wave of consolidation.
LONDON – European stock markets have surged on hope that Greece would seal a deal with its EU-IMF creditors this week to save the country from default and a possible euro exit.
Eurogroup head Jeroen Dijsselbloem sounded an optimistic note following a meeting of eurozone finance ministers in Brussels to review new reform proposals by Greece.
Athens’ plans are a “welcome step” and “an opportunity to get that deal later this week and that is what we will work for,” Dijsselbloem told reporters, adding that the Eurogroup would likely meet again later this week.
In the euro area, the CAC 40 in Paris jumped 3.81 per cent to close at 4,998.61 points while Frankfurt’s DAX 30 also gained 3.81 per cent to stand to 11,460.50 points.
The Milan stock exchange won 3.46 per cent, Madrid climbed 3.87 per cent and the Athens Composite Index rocketed 9.0 per cent.
Outside the eurozone, London’s benchmark FTSE 100 index of top companies rose 1.72 per cent to end the day at 6,825.67 points.
HONG KONG – Asian markets have closed mostly higher after Greece gave creditors new proposals on reforming its bailout, fuelling hopes of averting a default and possible exit from the eurozone.
The euro also advanced after Brussels said it had received the plans a day before a emergency European summit on Monday, with the office of Greek Prime Minister Alexis Tsipras calling it a “mutually beneficial deal”.
Tokyo rallied 1.26 per cent, or 253.95 points, to 20,428.19 and Seoul gained 0.40 per cent, or 8.20 points to 2,055.16, while Sydney reversed early losses to add 0.24 per cent, or 13.20 points, to 5,610.20.
Hong Kong jumped 1.20 per cent, or 320.32 points, to 27,080.85.
Shanghai was closed on Monday for a public holiday.
WELLINGTON – New Zealand shares have closed lower as offshore investors reduce exposure to kiwi dollar-based investment.
The benchmark index, now called the S&P/NZX 50 Index under a deal with S&P Dow Jones Indices, fell 9.721 points, or 0.2 per cent, to 5772.040 on Monday.
