LONDON (TheDeal) -- Investors remain transfixed this morning by events in China and Greece. The Chinese exchanges continued their stunning comeback overnight, though it was unclear whether the gains, engineered by the government's intervention, were sustainable. Most stocks that were traded went limit up and ceased to trade before the end of the day, while a raft of other stocks have been frozen by their company boards to avoid losses.
Meanwhile, in Europe, markets were cheered by Greece's apparent capitulation to its creditors and its offer to raise value-added tax and to reform pensions ahead of the weekend's make-or-break decision over its future membership in the eurozone.
In London, the FTSE 100 was up 1.17% at 6,658.73, while in Paris, the CAC 40 was up 2.77% at 4,889.17. In Frankfurt, the DAX was up 1.86% at 11,201.28.
In London, hotel operator InterContinental Hotels (IHG) was up 2.96% at 2,683 pence after it announced the $938 million sale of its last big owned property, the five-star InterContinental Hong Kong, to a consortium of investors advised by Hong Kong private equity company Gaw Capital Partners. IHG will retain a 37-year management contract on the hotel, with three 10-year extension rights. It also plans to announce in February next year how much cash it will pass to investors from the sale and from the disposal last year of the InterContinental Paris.
Also in London, International Consolidated Airlines (ICAGY) ascended 3.01% to 530 pence on news that Ryanair Holdings (RYAAY - Get Report) has accepted its offer for the budget airline's 29.8% stake in rival Irish carrier Aer Lingus (AIRXY). Ryanair said its offer of a cash payment of €2.50 per Aer Lingus share, plus a cash dividend of 5 euro cents per share, maximizes shareholder value and will result in a small profit on its investment in Aer Lingus over the past five years.
Ryanair has itself tried more than once to buy Aer Lingus, but has been foiled by antitrust regulators in the European Union and the U.K. IAG's offer values Aer Lingus at €1.4 billion ($1.56 billion). Ryanair was up 2.4% at €12.40 a share and Aer Lingus was up nearly 2.5% at €2.48.
In Paris, car maker Renault (RNLSY) was up 3.25% at €91.38, after it said synergies with its Japanese partner Nissan Motor (NSANY) posted record synergies of €3.8 billion in 2014, up from €2.87 billion the previous year.
In Japan, the Nikkei 225 bucked the trend, falling 0.38% to 19,779.83, while in Hong Kong, the Hang Seng bounced 2.08% to close at 24,901.28. In China, the Shanghai Composite was up 4.54% at 3,877.80.