By Tommy Stubbington European stocks rebounded and Greek government bonds surged Monday after Greece reshuffled its team for bailout negotiations with creditors. Markets had opened lower, after Friday's summit of eurozone ministers ended in deadlock, but picked up in the afternoon while Greek bonds rallied. The Stoxx Europe 600 closed 1.0% higher, building on the previous week's gains, and Greece's Athex Composite index surged 4.4%, led by bank stocks. The confrontation between Athens and its creditors has weighed on markets over the past two weeks, although weakness has generally been short-lived, with shares not far below their recent record highs. The latest bout of relief came after the shift in Athens' negotiating team, which may reduce the influence outspoken Greek Finance Minister Yanis Varoufakis has on the slow-moving negotiations. "There's a perception that the current finance minister's negotiating style hasn't been conducive to reaching a deal, so there are some hopes that this will take the talks in a more constructive direction," said Lyn Graham-Taylor, a fixed income strategist at Rabobank. Greek bond yields, which had risen earlier in the session, declined. The two-year yield fell by more than three percentage points to 22.1%. Spanish and Italian yields also fell. Yields fall as prices rise. Still, Greek yields remain at levels that indicate investors are worried about a default, with loans that Greece owes to the International Monetary Fund falling due in early May. In equity markets, Volkswagen AG was among the top risers after the departure of Chairman Ferdinand Piech. Deutsche Bank shares fell after the lender reported on Sunday a sharp fall in first-quarter profit, weighed down by a record fine to settle rate-rigging allegations. Tesco extended recent declines after the supermarket giant's credit rating was cut to junk territory by Fitch on Friday. Germany's DAX shrugged off small early losses to climb 1.9%, France's CAC 40 rose 1.3%, while the U.K.'s FTSE 100 advanced 0.5%. In currency markets, the euro rose 0.2% against the dollar to $1.0893. The British pound gained 0.3% against the buck to $1.5229. In commodities markets, Brent crude oil was down 0.5% at $64.95 a barrel while gold climbed 2.3% to $1,202.60 an ounce.

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