U.K. Stocks Climb for Third Day on Report Greece May Get Loan Extension

U.K. stocks rebounded from earlier losses after Reuters reported that a draft document of conclusions from the European Union summit calls for an extension of bailout loans for Greece.

The benchmark FTSE 100 Index (UKX) rose 29.98, or 0.5 percent, to 5,883.8 at 1:57 p.m. in London after earlier falling as much as 1 percent. The gauge has still lost more than 3 percent since this year’s high on Feb. 8 amid speculation that Europe’s debt crisis will spread to Italy and Spain. The broader FTSE All- Share Index gained 0.4 percent today, while Ireland’s ISEQ Index was little changed.

A draft document from the EU meeting today calls for an extension of loans for Greece from the European Financial Stability Facility to 15 years from 7 1/2 years, Reuters reported. The draft said new loans to Greece from the EFSF may be offered at a rate of 3.5 percent, according to Reuters. The EFSF may also be able to intervene in secondary bond markets, depending upon European Central Bank input, and recapitalize financial institutions through government loans, Reuters said.(Bloomberg)