European stock markets mostly rebounded on Monday as G8 support for Greece to remain p art of the eurozone boosted sentiment after last week's sharp sell-off, traders said.
London's benchmark FTSE 100 index rose 0.76 percent to 5,307.72 points in midday deals after tumbling by five percent last week.
Frankfurt's DAX 30 climbed 1.0 percent to 6,340.11 points and in Paris the CAC 40 gained 1.0 percent to 3,038.96. Madrid fell 0.47 percent.
In foreign exchange deals, the euro stood at $1.2773, unchanged from its level late in New York on Friday.
The US unit had earlier Friday hit a four-month-low of $1.2642 on deepening worries about the eurozone.
"Despite the continued uncertainties surrounding Greece, and the danger of a bank run engulfing Spain, many traders feel that equities are oversold and due a rally," said David Morrison, senior strategist at traders GFT Markets.
Spain on Monday denied that it needed foreign help for its banks, which are staggering under the mass of loans that turned sour after a 2008 property crash.
"No external help of any kind is needed," Economy Minister Luis de Guindos told reporters at a forum in Madrid.
With the future of Europe's currency union in doubt, leaders of eight of the world's largest economies called on Greece to stick to the terms of a massive EU-IMF bailout, which is hanging by a thread.
"We agree on the importance of a strong and cohesive eurozone for global stability and recovery," a G8 joint communique stated wrapping up a weekend meeting.
"We affirm our interest in Greece remaining in the eurozone while respecting its commitments."
The G8 club of developed nations comprises Britain, Canada, France, Germany, Italy, Japan, Russia and the United States.
"The tone from the G8 meeting over the weekend was nothing short of what was to be expected, which was reaffirming support for Greece and calling for a better balance between austerity and growth," said Joshua Raymond, chief market strategist at traders City Index.
On Monday, the finance ministers of France and Germany were to hold crisis talks in Berlin aimed at resolving differences ahead of a key European summit as debt-stricken Greece flirts with a eurozone exit.
Wolfgang Schaeuble hosts Pierre Moscovici to thrash out a common line for Wednesday's Brussels summit, after the meeting of G8 leaders left Berlin looking increasingly isolated with its austerity-driven solution to the crisis.
"Another G8 summit passes and the same old hot air emerges from the talks where leaders agree that something has to urgently be done about the eurozone crisis," said Simon Denham, head of Capital Spreads trading group.
"But the only thing that is agreed is some more meetings in the coming weeks where further discussions can be had about the never ending troubles in the world's largest economic block."
Over in the Asia-Pacific region, stock markets ended mostly higher on Monday, also following heavy losses last week on eurozone concerns.
Tokyo gained 0.26 percent, Sydney rose 0.67 percent and Seoul won 0.94 percent. Hong Kong fell 0.16 percent.
Global markets have been sent into a spin this month after May 6 polls in Greece and France saw voters overwhelmingly back anti-austerity parties.
Another election has been called for next month in Greece after several attempts to form a coalition government failed.
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