Easing fears over Greece and manufacturing data boost Euro stocks

European stocks rose to a six-month high this week, thanks to receding concerns over the state of the eurozone.

While risk appetite remains somewhat muted, share prices were buoyed by improved manufacturing data from Germany and the UK.

According to Reuters, European shares rose 1.5 per cent on February 1st to 1,053.05 points, following on from gains of almost five per cent in January.

Banking was the best-performing sector, thanks in part to increasing hope among investors that Greek debt talks will be resolved with a deal that prevents the country from defaulting.

The euro also rose on this anticipation that European debt can be managed in a sustainable way, resting at €1.315 to the dollar in morning trading on February 2nd.

Commenting on the wider economic situation, Mouhammed Choukeir, chief investment officer of Kleinwort Benson, said: "It would be an understatement to say we live in uncertain times, and it is impossible to predict what exactly will happen next.

"Still, historical evidence suggests the end game must involve bringing debt back to sustainable levels for both the private and public sectors."

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