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Bullish options bets on an exchange-traded fund tracking Greek shares have risen to a record. As the ASE fell on Wednesday, a record 15,422 bullish options on the Greek ETF traded, six times more than puts. "The call volume would simply be optimism of a deal", said David Negri, an equity futures and options trader at Timber Hill LLC in Greenwich, Connecticut. [Extracted from the article]

Shares erased a decline of as much as 0.8 percent after an official said Greece's creditors proposed a five-month extension to the aid program and 15.5 billion euros ($17.4 billion) in disbursements to help seal a debt agreement. Greece's ASE Index rose 2 percent on Friday, the best performer among western-European markets. [Extracted from the article]

European stocks declined, amid continued debate over Greece's fate, and speculation the Federal Reserve will signal a slow pace of monetary tightening. The Fed concludes its two-day policy meeting Wednesday, amid speculation mixed U.S. economic data and a deadlock over Greece may complicate the central bank's drive to raise interest rates. [Extracted from the article]

Investors choosing to focus on Greece are missing the bigger picture, according to Mark Andersen, the head of regional asset allocation at UBS's wealth-management unit, which oversees $2.2 trillion. The Fed rate increase is a bigger concern than Greece because the European Central Bank will provide a floor to the region's equities, UBS's Andersen said. [Extracted from the article]

Some of Europe's strategists and largest investors are recommending loading up on the region's equities once the Greek impasse ends -- no matter what the outcome. None of that is bad news to Pictet Asset Management's Luca Paolini and AXA Investment Managers' Gilles Guibout, who see a buying opportunity. JPMorgan Chase & Co. says investors will be reluctant to buy the dips in European stocks until Greece and its creditors seal a deal. [Extracted from the article]

So say Ralf Zimmermann of Bankhaus Lampe KG and UniCredit Bank AG's Christian Stocker, who forecast the DAX Index could slip as low as 10,000. A rebound in the euro coupled with losses in German bunds has made the DAX the second worst-performing index among developed markets this quarter. While UniCredit Bank's Stocker sees the DAX at risk, he also says potential declines would be temporary. [Extracted from the article]

European stocks trimmed their weekly gain amid increasing concern that Greece's efforts to renegotiate its debt and stay in the single currency will fail. Greece's ASE Index lost 5.9 percent, for the biggest decline among western-European markets, with National Bank of Greece SA and Eurobank Ergasias SA falling more than 10 percent. [Extracted from the article]

Investors in European equities are far more optimistic than their bond counterparts, judging by prices in the options market. Investors saw a buying opportunity with equity earnings yields approaching 5 percent, compared with the average 1.1 percent rate that the region's debt offers. [Extracted from the article]

Still, "the ECB and Federal Reserve will not allow a market crash", he said. That doesn't convince Compass Capital's Benedict Goette, who says investors should either reduce their exposure to stocks, hedge or switch into cash. [Extracted from the article]

The Stoxx Europe 600 Index slipped 0.8 percent to 392.65 at the close of trading. The ASE Index slid 1.3 percent, the most among western-European peers. [Extracted from the article]

While the Euro Stoxx 50 Index has climbed 17 percent since the start of the year, expectations for dividend growth have risen about one-third as fast, according to futures. "Dividend growth just hasn't had a chance to catch up yet", said Barakos, the London-based chief investment officer of European equities. [Extracted from the article]

"That headline on the ECB accelerating purchases is a solid reminder not to fight central banks that are keeping rates low and being aggressive in buying bonds. Since then, the Euro Stoxx 50 has rebounded 2.7 percent as Executive Board member Benoit Coeure said the ECB will boost asset purchases in May and June ahead of a drop-off in market liquidity in the summer. [Extracted from the article]

To contact the reporter on this story: Inyoung Hwang in London at ihwang7@bloomberg.net The ECB's quantitative-easing program helped push the Stoxx 600 up as much as 21 percent this year through a record in April as carmakers led the rally. [Extracted from the article]

Greece's ASE Index added 1.6 percent, erasing a 2.7 percent drop after a report that the European Commission is proposing a deal compromise. European shares rebounded on Monday after the Stoxx 600 dropped 0.9 percent last week as the euro gained, bonds tumbled and economic data in the U.S. missed estimates. [Extracted from the article]

JPMorgan Asset Management says dividend payout rates that are almost double the yield of 10-year gilts will keep demand flowing for U.K. stocks. "In a yield-hungry world where some bonds are yielding negative, the FTSE 100 -- an international index that's yielding almost 4 percent -- looks pretty attractive", said William Meadon, a London-based fund manager at JPMorgan Asset Management. The 3.8 percent dividend yield of FTSE 100 companies compares with a rate of about 2 percent on Britain's 10-year bonds and 3.4 percent for the payout rate of Euro Stoxx 50 members. [Extracted from the article]

The drop in Airbus dragged France's CAC 40 Index down 1.2 percent, while Greece's ASE Index slid 2.5 percent. The DAX Index lost 0.3 percent after rallying 2.2 percent last week. [Extracted from the article]

Glencore Plc and Rio Tinto Group led miners higher after China's central bank cut interest rates. The Bank of England maintained its benchmark rate at a record low on Monday, as forecast by economists in a Bloomberg survey. [Extracted from the article]

Complacency over Greek debt negotiations prompted Ramin Nakisa, a London-based global-asset allocation strategist at UBS Group AG, to turn cautious on European stocks in March. Investors have poured money into an exchange-traded fund tracking Europe's stocks every week since January, including record inflows of $372 million on May 6. [Extracted from the article]

The DAX Index climbed 2.7 percent, completing its best week in a month, while the Swiss Market Index added 2.5 percent, ending a three-day decline. Greece's ASE Index fell 0.3 percent before a meeting of euro-area finance ministers May 11, the only western-European market to decline. [Extracted from the article]

U.K. stocks were little changed before Thursday's election as a drop in J Sainsbury Plc offset advances in Vodafone Group Plc and Imperial Tobacco Group Plc. The Conservatives and Labour are neck-and-neck in polls, while more voters than ever are likely to back the U.K. Independence Party, the Greens and the Scottish National Party. [Extracted from the article]

Lloyds jumped 7.1 percent as Britain's biggest mortgage lender said it will exceed its lending profitability target after first-quarter earnings beat analyst estimates. The FTSE All-Share Index and Ireland's ISEQ Index rose 0.3 percent on Friday. Aberdeen Asset Management Plc and Hargreaves Lansdown Plc fell 2.5 percent for the biggest declines in the FTSE 100. [Extracted from the article]

To contact the reporter on this story: Inyoung Hwang in London at ihwang7@bloomberg.net The FTSE 100 Index added 0.2 percent to 6,960.63 at the close in London, shoring up a 2.6 percent monthly gain for the benchmark. The FTSE All-Share Index added 0.2 percent, while Ireland's ISEQ Index fell 0.6 percent. [Extracted from the article]

European stocks slipped, after two days of gains, as health-care shares dropped, and companies including Standard Chartered Plc posted disappointing earnings. Total SA rose 1 percent after earnings beat forecasts as refining gains and faster production helped offset lower oil prices. [Extracted from the article]

HSBC Holdings Plc and Standard Chartered Plc led U.K. stocks to a fresh record. HSBC climbed 3.1 percent after after the Sunday Times reported the lender may spin off its U.K. retail bank. The FTSE All-Share Index added 0.5 percent on Monday, while Ireland's ISEQ Index gained 0.8 percent. [Extracted from the article]

At the same time, the Standard & Poor's 500 Index has climbed 3.8 percent from a low in March and the Nasdaq Composite Index has jumped to a record. A fund tracking the S&P 500 has seen almost $38 billion pulled this year, according to data compiled by Bloomberg. Short interest on the biggest exchange-traded fund tracking the S&P 500 has almost tripled from the start of the year to 7.6 percent of shares outstanding, data compiled by research firm Markit show. [Extracted from the article]

To contact the reporter on this story: Inyoung Hwang in London at ihwang7@bloomberg.net The FTSE All-Share Index also rose 0.2 percent on Friday, while Ireland's ISEQ Index added 0.5 percent. [Extracted from the article]

To contact the reporters on this story: Oliver Renick in New York at orenick2@bloomberg.net; Inyoung Hwang in London at ihwang7@bloomberg.net To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net; Jeff Sutherland at jsutherlan13@bloomberg.net Jeff Sutherland The Nasdaq Composite Index climbed above its all-time closing high set in March 2000. [Extracted from the article]

The Stoxx 600 is trading at the highest level relative to individual price targets by analysts in at least 10 years, Bloomberg data going back that far shows. The health-care sector is currently analysts' favorite, rated on average 3.79 on a scale where 5 equates to a unanimous buy recommendation, according to Bloomberg data. [Extracted from the article]

To contact the reporter on this story: Inyoung Hwang in London at ihwang7@bloomberg.net U.K. stocks gained for a second day, with Sky Plc and ARM Holdings Plc leading the rally after reporting an increase in sales. ARM, the chip designer whose technology is in almost all of the world's smartphones, rose 3.9 percent after posting first-quarter revenue that increased 22 percent. [Extracted from the article]

Anglo American Plc, BHP Billiton Ltd. and Rio Tinto Group climbed at least 2.5 percent after China's central bank cut the amount of reserves lenders need to hold by the most since the global financial crisis. The FTSE All-Share Index rose 0.7 percent, while Ireland's ISEQ Index ended little changed today. [Extracted from the article]

European stocks rose with commodity shares after Mario Draghi said quantitative easing will continue until there's sustained improvement in inflation. The Stoxx 600 has surged 21 percent this year, with a weaker euro helping exporters, as the ECB began quantitative easing. ECB President Draghi said the central bank's monetary policy is helping the region's economic recovery. [Extracted from the article]

The FTSE 100 Index climbed 0.2 percent to 7,075.26 at the close in London, after erasing gains thrice in intraday trading. The FTSE All-Share Index also rose 0.2 percent, while Ireland's ISEQ Index dropped 0.2 percent today. Aberdeen Asset Management Plc fell 2.5 percent as RBC Capital Markets LLC downgraded the shares, predicting faster equity outflows. [Extracted from the article]

Miners dragged U.K. stocks lower, after the FTSE 100 Index posted a weekly advance. The FTSE 100 declined 0.4 percent to 7,064.3 at the close of trading in London, after the benchmark gauge rallied 3.8 percent last week to extend a record. The FTSE All-Share Index dropped 0.3 percent today, while Ireland's ISEQ Index slid 0.4 percent. [Extracted from the article]

One stimulus-fed rally after another is expanding equity capitalization worldwide to records after central banks in two dozen countries committed to cutting interest rates or initiating a quantitative easing program. Even in Europe, where growth is picking up, equity markets are complacent when considering the expensive valuations stocks have reached, he said. "Post-financial crisis, companies have found good ways to make profit and conscientious investors have been able to see strong equity returns". [Extracted from the article]

Researchers at the New York-based firm examined industry ETFs and their relationship to trading in members with lower volume. Boroujerdi and Fogertey also highlighted the correlation between ETF use and market volatility, saying that "investors reach for ETFs when fear is high". When the monthly average for the Chicago Board Options Exchange Volatility Index rose above 35, ETFs accounted for 35 percent of the total traded value, compared with just 15 percent when the so-called fear gauge was below 12, data compiled by Goldman Sachs since 2004 show. [Extracted from the article]

European stocks have gained 21 percent this year, including the steepest first-quarter advance since 1998, as the euro weakened amid quantitative-easing measures by the European Central Bank. While investors have been focusing on exporters, they'll shift to companies dependent on a domestic rebound as the ECB's stimulus pervades the economy, according to SEB AB's Thomas Thygesen. In the U.S., three rounds of Federal Reserve asset purchases helped the Standard & Poor's 500 Index more than triple from a 2009 low. [Extracted from the article]

U.K. stocks advanced, with the FTSE 100 Index extending a record, led by Shire Plc and a rally in homebuilders. The FTSE All-Share Index rose 1 percent to extend a record, while Ireland's ISEQ Index fell 0.1 percent. [Extracted from the article]

Aberdeen Asset Management Plc jumped 4.2 percent for the biggest gain in the index. The benchmark gauge extended gains after the Bank of England kept the benchmark interest rate at a record low. The FTSE All-Share Index rose 1.1 percent, while Ireland's ISEQ Index increased 1.2 percent. [Extracted from the article]

The Stoxx 600 has rallied 19 percent this year as the European Central Bank started a quantitative-easing program. Greece's ASE Index rose 1.1 percent after a person familiar with the matter said the ECB increased the emergency aid for the nation's banks. Greece met its payment obligation to the International Monetary Fund that was due on Thursday. [Extracted from the article]

European stocks, which surpassed a record close earlier, pared gains as oil extended losses. BG Group Plc jumped a record 27 percent after Royal Dutch Shell Plc agreed to buy it for 47 billion pounds ($70 billion) in cash and stock. [Extracted from the article]

Royal Dutch Shell Plc led U.K. stocks lower, erasing earlier gains, after a report showed U.S. oil inventories grew more than expected last week. The FTSE 100 Index lost 0.4 percent to 6,937.41 at the close in London, wiping out an earlier rally of as much as 0.7 percent fueled by Shell's $70 billion takeover of BG Group Plc. [Extracted from the article]

The equity benchmark has jumped 18 percent this year to within 0.3 percent of its 2000 record, amid optimism that European Central Bank stimulus will revive the region's economy and the Federal Reserve won't rush to raise rates. Among stocks moving on corporate news, TNT Express NV soared 28 percent after agreeing to a 4.4 billion-euro ($4.8 billion) takeover offer from FedEx Corp. TNT investors will receive 8 euros a share in cash, 33 percent more than the closing price on April 2. [Extracted from the article]

Investors see a bullish outcome to Vivendi SA's tussle with Wall Street activist Peter Schoenfeld. Traders may be betting that the French media company's chairman, Vincent Bollore, will at least partially cave in to Schoenfeld's demands to increase shareholder returns, says Liberum Capital Ltd.'s Ian Whittaker. A Vivendi spokesman declined to comment on the options trading or Schoenfeld's demands. [Extracted from the article]

The ASE Index dropped 6.1 percent, its longest stretch of quarterly declines in six years. Germany's DAX Index lost 1 percent and Portugal's PSI 20 Index fell 0.8 percent on Tuesday. [Extracted from the article]

U.K. stocks advanced, with the FTSE 100 Index poised for its biggest quarterly gain in two years. The FTSE 100 added 0.5 percent to 6,891.43 at the close of trading in London. The FTSE All-Share Index also climbed 0.5 percent on Monday, and Ireland's ISEQ Index increased 1.6 percent. [Extracted from the article]

The benchmark gauge almost erased its gains in the final hour of trading amid losses in miners and energy shares, before moving higher. Europe's benchmark gauge has fallen 2.1 percent this week, led by a decline in technology shares and commodity producers, while Saudi Arabia and its allies began bombing rebels in Yemen. A gauge of miners lost 1.8 percent, with Anglo American Plc and Glencore Plc down more than 3 percent, as commodities declined. [Extracted from the article]

Options traders had several companies to consider in trying to figure out what Warren Buffett would do next in the food industry. "Options traders have been placing their bets in the consumer-foods segment ever since it was reported 3G Capital was interested in a large deal", said Kunkle, founder of the Boston-based provider of market data and analytics. [Extracted from the article]

Technology shares posted the worst performance, extending losses as U.S. peers also fell. Among shares moving on corporate news, Accor SA dropped 4.3 percent, leading travel and leisure shares lower. Marine Harvest ASA tumbled 5.6 percent after Nordea Bank AB lowered its price estimate on the shares and kept a sell rating, citing weak demand from Russia. [Extracted from the article]

To contact the reporter on this story: Inyoung Hwang in London at ihwang7@bloomberg.net The FTSE 100 added 0.2 percent to 7,037.67 at the close in London, erasing an earlier decline of as 0.4 percent. The FTSE All-Share Index added 0.1 percent today and Ireland's ISEQ Index slid 0.8 percent. [Extracted from the article]

Even as data show fund managers at their most bullish on European equities, there's still room for stocks to rise, says JPMorgan's Emmanuel Cau. Stocks were on course for the best quarterly rally since 2009 on Thursday amid speculation stimulus from the European Central Bank will revive the region's economy, while a 12 percent drop in the euro versus the dollar this year will boost profits. [Extracted from the article]