Dubai: European stocks extended gains for a sixth day to its highest level in seven years, and US indexes recovered to hit another record after Greece proposed a list of reforms to euro group and Federal Reserve indicated to consider rate hikes on a meeting to meeting basis.

EURO STOXX 50 extended its gaining streak on Tuesday, and was up 0.14 per cent at 3,524.43. In Greece, Athens Stock Exchange General Index was up more than 8 per cent to be 925.20, after it was closed on Monday for a holiday.

Greece’s package of new economic measures is good enough to proceed toward concluding an extension of the country’s bailout, according to the European Commission.

In a letter to Jeroen Dijsselbloem, who heads meetings of euro-area finance ministers, Commission Vice-President Valdis Dombrovskis and Commissioner Pierre Moscovici said that a careful review for the proposals had followed “constructive exchanges” with the Greek government over its reform efforts.

The Federal Reserve is preparing to consider interest rate hikes “on a meeting by meeting basis,” Fed Chair Janet Yellen told a congressional committee on Tuesday.

“If economic conditions continue to improve, as the Committee anticipates, the Committee will at some point begin considering an increase in the target range for the federal funds rate on a meeting-by-meeting basis,” Yellen said.

Dow Jones Industrial Average was up 0.20 per cent to be a 18,153.35, after hitting a peak at 18,161.60. The S&P 500 index was also up at 2,110.35.

Gold falls below $1,200:

Gold fell further to slip below the keenly watched $1,200 an ounce mark.

International gold fell 0.32 per cent to be at $1,198.04 an ounce, and Comex gold for April delivery was also down 0.11 per cent at $1,199.50.

“Gold has lost some of its status as an insurance policy following the reduced worries related to Greece. As a result speculative traders have reduced bullish bets by a third over the past three weeks,” said

Ole Hansen, head of commodity strategy, at Saxo Bank.

“Near term gold may struggle but in a world were zero interest rates or below are becoming the standard gold should still find its way into investor portfolios. I see gold stabilise ahead of the January low at $1,168 while the upside remain capped by the 200 day moving average, currently at $1,247,” Hansen said.