Europe shares rise on Greece

European shares surged and the Greek stock market jumped 8% while the borrowing costs of Italy, Spain, and Portugal — the countries most likely to be hit if Greece heads for the eurozone exit — fell sharply.

US stocks rose with global equities, and bonds from Spain to Italy surged amid optimism that Greece’s debt crisis will end. The euro strengthened against most major peers, while US treasuries dropped with German bunds.

EU officials expressed confidence that a deal with Greece was within reach after Prime Minister Alexis Tsipras’s government submitted a last-minute set of proposals they said could end a five-month standoff over aid. Greek stocks and bonds surged as officials meeting in Brussels yesterday said that progress had been made towards meeting the terms of creditors, including in the contentious areas of pensions and revenue.