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European Markets Rally on Portugal Holding Coalition Together, Hopeful of a Brighter Future

European stocks rose, rebounding from their biggest decline in almost two weeks, amid speculation that economic data will improve and as Portugal’s politicians reached an agreement to hold the governing coalition together. U.S. index futures gained and Asian shares fell.

Novartis AG (NOVN) climbed 1.7 percent after saying a psoriasis treatment met all its objectives in a clinical study. Lloyds Banking Group Plc (LLOY) advanced 2.7 percent after a person with knowledge of the matter said a former Standard Chartered Plc executive may mount a bid for a stake in the U.K.’s biggest mortgage lender. Bovis Homes Group Plc jumped 4.6 percent as the company said that profit increased in the first half.

The Stoxx 600 increased 1.4 percent to 292.26 at 11:10 a.m. inLondon. Standard & Poor’s 500 Index futures added 0.6 percent after the equity benchmark rose 1 percent on July 5 after a better-than-forecast payrolls report. The MSCI Asia Pacific Index slid 1.5 percent today.

“The world looks rosy to investors again, after the U.S. market rallied on much better-than-expected employment numbers that investors finally seem to be interpreting as good news,” John Plassard, who helps oversee $28 billion as vice president at Mirabaud Securities LLP in Geneva, wrote. “We have reached a point where markets will reflect the real economy more.”

In Portugal, Prime Minister Pedro Passos Coelho proposed that Paulo Portas, leader of the junior party in the governing coalition, become vice premier. The appointment helps cement a deal to hold the coalition together. Portugal’s PSI 20 Index retreated 2.7 percent last week when Portas resigned after Coelho appointed a new finance minister.

Finance Ministers

Euro-area finance ministers meeting at 3 p.m. in Brussels will discuss Greece’s progress in meeting the conditions needed to obtain further aid from the International Monetary Fund,European Central Bank and European Commission. Greece’s Finance Minister, Yannis Stournaras, said the Greek government will probably reach a deal with international creditors before today’s Eurogroup meeting….”

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