Greek Deal Hopes Shore Up World Stocks

LONDON (AP) --- Optimism over the prospects of a deal to avoid a Greek debt default and the country's potential exit from the euro shored up global stock markets once again on Tuesday.

KEEPING SCORE: In Europe, Greek stocks led the way ahead for the second day running, with the main index in Athens up 4.5 percent. Elsewhere, Germany's DAX rose 1.2 percent to 11,598 while the CAC-40 in France rose 1.3 percent to 5,063. The FTSE 100 index of leading British shares was 0.3 percent higher 6,843. Wall Street looked poised for another up day, with Dow futures and the broader S&P 500 futures up 0.2 percent.

GREEK TALKS: Greece's new reform list appears to have won the initial backing from its international creditors. At a meeting Monday, leaders of the 19 nations that use the euro currency said the offer by the government of Prime Minister Alexis Tsipras might form a basis to break a four-month deadlock. The two sides are now in technical discussions before another eurozone meeting on Wednesday and a leaders' summit the following day. Investors think that a deal will be signed then, in time for Greece to get the money it needs to pay an upcoming payment to the International Monetary Fund.

ANALYST TAKE: "Given all of the positive and optimistic comments coming from most officials on the creditors side, it looks very unlikely now that a deal will not be agreed by Wednesday evening that could then be signed off at Thursday's summit," said Craig Erlam, senior market analyst at OANDA.

US DATA RUN: Though most interest in financial markets remains on Greece, there's a raft of U.S. economic data later that could impact upon trading. In focus will be durable goods orders as well as new home sales figures, both for May. The financial community is trying to work out when the Federal Reserve will start raising interest rates. Signals have been mixed in recent weeks.

DOLLAR IS KING: Expectations that the Fed may raise rates sooner than many think have helped support the dollar on Tuesday, particularly against the euro. Europe's single currency was trading 1.2 percent lower at $1.1212 despite a survey from financial information company Markit indicating that the 19-country eurozone economy picked up steam in June despite worries over Greece. "The reason why the euro is ignoring domestic developments is because the foreign exchange market appears to be focused on the dollar and the next steps for the Federal Reserve, and not the eurozone," said Kathleen Brooks, research director at

CHINESE MANUFACTURING: A survey by HSBC Corp. found Chinese manufacturing improved in June but still was contracting. Output and new orders rose and improved export orders suggested foreign demand might be recovering. That suggests the economy "has started to find its footing," said Capital Economics in a report.

ASIA'S DAY: The Shanghai Composite Index rose 2.2 percent to 4,576.49 and Tokyo's Nikkei 225 rose 1.9 percent to 20,809.42. Seoul's Kospi was up 1.3 percent at 2,081.20. Sydney's S&P/ASX 200 advanced 1.3 percent to 5,684.30 and Hong Kong's Hang Seng added 0.9 percent to 27,333.46.

ENERGY: Benchmark U.S. crude shed 28 cents to $60.10 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, was up 11 cents at $63.45.