Stocks closed higher in Europe Monday as financial leaders met in Brussels to decide on the fate of a second bailout for debt-burdened Greece.
It was clear investors were betting the European Union would approve the $172 billion loan for Greece after months of headlines that played on both sides of the issue.
In London, the FTSE 100 index added 32.55 points or 0.55 percent to 5,937.62, the highest close since July 2011.
The gains followed a week in which the FTSE index rose 0.9 percent.
The regional Stoxx Europe 600 closed 0.62 percent higher Monday, hitting 267.58, its highest level since July.
The German DAX 30 index gained 0.51 percent, 75.99, to reach 6,924.02. The CAC 40 in France rose 0.51 percent, adding 17.46 points to 3,457.08.
In the United States, markets were closed due to President's Day, but the blue-chip Dow Jones industrial average has been flirting with 13,000 points, closing Friday up 45.79 points or 0.35 percent to 12,949.87. The last time the index was above 13,000 was May 2008.
Stronger employment data, rising housing starts and solid retail figures have given U.S. markets a boost. Now there is the possibility that worries over a prolonged sore spot, Greece, will ease at least for a while.
"We expect a deal to be done, however, we do not anticipate it being sufficient to prevent Greece from coming back to the table again in roughly 5-6 months time," MarketWatch quoted Spotlight Ideas managing partner Stephen Pope as saying in a research note.
"The nation is in the fifth straight year of economic contraction and without growth it is almost impossible to see whatever funds are lent now or in the future being serviced properly or repaid," Pope said.
