Europe stocks shake off Greek default fears

European markets surged Monday, appearing to price in the increasing possibility of some kind of deal to prevent debt-ravaged Greece from defaulting on its loans from international creditors and exiting the eurozone.

While the euro currency was marginally higher against the dollar, major stock indexes across Europe bounded higher as European leaders met in Brussels to try to hammer out a last-minute agreement that would enable to Athens to meet a June 30 deadline to repay the International Monetary Fund $1.8 billion.

In Greece, the banking-stocks-heavy Athex composite index powered 9% higher as yields on 10-year Greek government bonds yields fell sharply to 11%.

In Germany, the DAX index advanced over 3%, and in Paris the CAC 40 index was up by a similar amount. Britain's FTSE 100 index gained 1.4%.

"Tentative signs of progress toward an accord between Greece and its creditors (is fueling) risk appetite," said Ilya Spivak, a currency strategist at DailyFX, an online currency broker and source of foreign-exchange-related news.

Few details were available Monday, but the Greek government has submitted proposals to its creditors — the IMF, plus the European Central Bank and European Commission — aimed at breaking a deadlock in debt talks that have been stalled for five months.

Without a deal, analysts say Greece risks its membership of the 19-nation, euro-currency bloc.

Martin Selmayr, a senior aide to Jean-Claude Juncker, the European Commission's president, wrote in a Twitter post Monday that the latest proposals by Greek Prime Minister Alexis Tsipras' government were a "good basis for progress."

Eurozone finance ministers indicated that if a deal comes it may be in the next few days.

MORE STORIES ON THE GREEK DEBT CRISIS