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European debt crisis live: Critical Greek debt deal talks continue

European markets set to rise and the euro push higher on the IMF’s plans and hopes that a Greek debt deal can be done

8.03am: The troika will deliver its latest report on the progress of Ireland‘s bailout programme today. After spending the past ten days in Ireland, officials from the European Commission, the European Central Bank and the International Monetary Fund will report their findings amid growing speculation that Ireland needs a second bailout.

7.55am: European readers will be waking up to the news that Kodak has filed for bankruptcy. This comes after the photographic film pioneer’s desperate attempts to adapt to the digital age and restructure to become a seller of consumer products such as cameras.

7.24am: Good morning. We’re back with more coverage of the eurozone debt crisis and world economy.

Asian shares have hit two-month highs as the mood improved among investors, hopeful that the International Monetary Fund would beef up its bailout funds to help tackle the eurozone debt crisis.

Japan’s Nikkei finished 1% higher at 8639.68, while Hong Kong’s Hang Seng climbed 0.9% to 19,868.64.

Markus Rosgen, head of Asia strategy at Citigroup in Hong Kong, told Reuters:

The global growth environment may not be great but it is not disastrous. Equities are pricing in a pretty bad environment but it’s not as bad as prices suggest.

Now and then, there will be de-risking but by and large, most people are still too bearish on global growth.

European shares are set to open higher, while the euro has also been pushing higher, to .2880, before falling back to .2858. Investors remain wary ahead of Spanish and French debt auctions later today.

Michael Hewson, market analyst at CMC Markets, said:

The single currency continues to trade with a slightly more positive bias on hopes that a Greek debt deal could well be arrived at by the weekend. While this seems extremely doubtful at this stage, the number of short positions in the single currency appears to be prompting some short covering. This is reflected in the way the market shrugged off the downgrade of Germany by ratings agency Egan Jones. It would appear that the agencies are losing their capacity to surprise.

Reports that the IMF were looking at measures to increase the amount of available funds for bailouts also added some fuel to the rebound, but the practicalities surrounding any measures remain difficult, as well as political, with the US opposed to further funds being added.

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