(MENAFN- Gulf Times) European equity markets closed sharply higher yesterday before a G7 finance meeting focusing on Greece's debt drama, while airlines group IAG neared its takeover of Irish rival Aer Lingus.
Markets were attentive to reports quoting Greek government sources saying Greece and its creditors were to start drafting a along-awaited agreement yesterday that would release much needed bailout loans for the struggling eurozone country.
London's benchmark FTSE 100 index ended the day up 1.21% at 7,033.33 points, as investors also tracked the state opening of parliament and the legislative programme for Prime Minister David Cameron's newly-elected British government.
In Frankfurt, the DAX 30 climbed 1.26% to 11,771.13 points, while in Paris the CAC 40 rose 1.95% to 5,182 points compared with Tuesday's closing level.
The European single currency rose from a new one-month low earlier in the day to $1.0897, compared to $1.0879 late in New York on Tuesday.
International Monetary Fund managing director Christine Lagarde, Eurogroup chief Jeroen Dijsselbloem, European Central Bank chief Mario Draghi and the EU Commissioner For Economic and Monetary Affairs, Pierre Moscovici will all be at the G7 meeting.
The IMF, ECB and EU Commission are currently trying to hammer out a deal that would unlock ‚¬7.2bn in remaining bailout loans in return for pledges by Athens to push through crucial economic reforms.
London was boosted after the Irish government agreed on Tuesday to sell its 25% stake in Aer Lingus to British Airways owner International Airlines Group (IAG).
IAG's takeover deal offers Aer Lingus shareholders ‚¬2.55 a share - ‚¬2.50 plus a ‚¬0.05 dividend - valuing it at ‚¬1.36bn ($1.48bn).
The announcement sent IAG's share price 3.21% higher, closing at 562 pence in London. Aer Lingus shares won 1.87%, ending the day at ‚¬2.4399 in Dublin.
However, the takeover now hinges on the next move by Ryanair - which owns almost 30% of the Irish flag-carrier. IAG said it would also make an offer to Ryanair for the shares the budget airline owns at the same price.
Shares in cigarette maker Imperial Tobacco rallied 3.32% to 3,393 pence after Reynolds American won regulatory approval to sell its Winston, Kool, Salem and Maverick brands to the British firm.
US stocks were trading mostly higher yesterday, recovering some of the prior day's losses as good earnings from Tiffany offset a disappointing report from Michael Kors.
In midday trading, the Dow Jones Industrial Average was up 0.65% to 18,158.08 points.
The tech-rich Nasdaq Composite Index advanced 0.95% to 5,080.46 points, while the broad-based S&P 500 shed early gains to dip 1.03% to 2,104.20.
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