DAX 30 records biggest gain since 2012 on potential Greek agreement

DAX 30 records biggest gain since 2012 on potential Greek agreement  fxcommentDAX 30 and other European indices advanced on Monday on hopes Greece is very close to reaching a deal with its creditors.

Shares of Greek banks led the rise as they leaped the most since May 2013, pushing indices in Germany, France and Spain to their biggest gains since 2012.

The new proposal delivered by Greece has paved the way for a potential agreement, Dutch Finance Minister Jeroen Dijsselbloem said.

Negotiations between Greece and its creditors would now continue “with a view of reaching a final agreement later this week,” Dijsselbloem said.

While tonight’s EU summit may not witness a deal for Greece, it could be a real step towards releasing a 7.2 billion-euro said installment for Athens to avert default by the end of this month.

Markets have been very sensitive to the latest developments from Greece, as a Greek default would lead to myriad economic problems for both Greece and the euro area.

DAX 30 added 420.40 points, or 3.81 percent, to trade around 11,460.50 points, as of 11:45 ET.

The index found a solid ground at 38.2% Fibo support for the upside tend which began on mid-July 2014.

DAX rebounded from 10,884.5 but currently faces resistance at 23.6% Fibo. Located at 11,474.

The Parabolic SAR provides a positive sign, while the RSI 14 rose above the 50-center line.

Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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