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European stocks mostly higher awaiting Greece deal

London - European stock markets mostly rose on Monday awaiting the latest Greek bailout agreement, but London wilted as more poor Chinese data penalised heavyweight miners.

London's benchmark FTSE 100 index dropped 0.39% to stand at 6 692.57 points in mid-afternoon trading in the British capital.

In the eurozone, Frankfurt's DAX 30 climbed 0.61% to 11 561.32 points and the CAC 40 in Paris won 0.48% to 5 179.75 points compared with Friday's close.

In foreign exchange, the euro dipped to $1.0944 from $1.0962 late on Friday in New York.

"The weakness in China has not gone unnoticed... with the FTSE underperforming other European indices," said Brenda Kelly, head analyst at London Capital Group.

Shares in oil majors were also affected as world crude prices hit new lows earlier Monday before rebounding slightly.

In afternoon deals on the FTSE, Tullow oil was down 2.49% to 222.80 pence and miner Anglo American shed 2.04% to 784.20 pence.

China's foreign trade performance worsened in July with both exports and imports falling more than eight percent on an annual basis, data revealed on Saturday.

Consumer inflation meanwhile accelerated slightly to 1.6%  in July, compared with 1.4% in June, official data showed on Sunday, although analysts warned the slow rise in prices is still a risk for China's economy.

But Shanghai's main index closed up almost five percent Monday on merger speculation between two major state-owned shipping enterprises, offsetting the weak Chinese economic figures released over the weekend, dealers said.

US stocks jumped in opening trade Monday following news that Warren Buffett's Berkshire Hathaway would acquire aerospace supplier Precision Castparts for $37.2bn.

Five minutes into trade, the Dow Jones Industrial Average advanced 0.95% to 17 537.93 points.

The broad-based S&P 500 gained 0.87% at 2 095.70 points, while the tech-rich Nasdaq Composite Index rose 0.88% to 5 088.11.

In addition to the Berkshire acquisition, analysts said sentiment was also lifted by reports Greece may be nearing a deal to finalise its third bailout package.

Athens and its creditors resumed talks Monday after marathon discussions late into the night, with both sides indicating that terms of the bailout were drawing close.

They are hammering out the draft of a crucial new bailout of up to €86bn ($94bn) in exchange for further reforms before the debt-ridden country must repay €3.4bn to the European Central Bank on August 20.

Germany warned that negotiations must emphasise "thoroughness over speed", appearing to throw cold water on Greek optimism for a quick deal.

"The Athens officials are quite hopeful about achieving the third bailout, but traders don't share their optimistic outlook," said David Madden, market analyst at IG trading group.

Europe's main stock markets had meanwhile edged down on Friday as investors digested disappointing data out of the eurozone, a mixed US jobs report and the likelihood of an imminent US interest rate rise.


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