13th Jul 2015 10:34
PARIS (Alliance News) - The European markets were trading higher on Monday, after European Council President Donald Tusk said Greece reached a new three-year bailout agreement with its creditors.
After marathon talks that lasted 17 hours, Tusk said there are strict conditions to be met as Athens would have to push through legislation a series of austerity measures, including divisive overhauls of its pension and tax system, in the coming days to avert a state bankruptcy.
Greece's banking system is severely stressed and is largely dependent on emergency support from the European Central Bank. Greece faces a 3.46 billion euros payment to the central bank on July 20.
Tusk said Eurozone finance ministers would work with the institutions to swiftly take forward the negotiations and would hold urgent discussions on providing bridge-financing to Greece.
The Euro Stoxx 50 index of eurozone bluechip stocks climbed 1.80%, while the Stoxx Europe 50 index, which includes some major UK companies, jumped 1.74%.
The German DAX index climbed 1.4%, the French CAC 40 jumped 1.9%, and the FTSE 100 index of the UK gained 0.7%. Switzerland's SMI rose 1.7%.
In Frankfurt, Commerzbank gained 3.6% and Deutsche Bank added 2.7%.
Deutsche Boerse and Lanxess were gaining 3.6% and 2%, respectively.
Daimler climbed 1.8%, BMW added 1.7% and Volkswagen rose 1.6%.
In Paris, Societe Generale climbed 3.3%. Credit Agricole added 3% and BNP Paribas rose 2.9%.
Publicis Groupe was gaining around 3% and Sanofi added 2.8%. Deutsche Bank raised Sanofi to "Buy" from "Hold."
Renault climbed 2.1% and Peugeot rose 2.5%.
In London, Alent surged nearly 45%. Specialty chemicals company Platform Specialty Products Corp. proposed to acquire the chemicals producer in a cash and stock deal for about USD2.1 billion.
Lender Barclays gained 2.3%. Drugmaker Shire added 2.2%.
International Consolidated Airlines advanced 1.7%. CRH and Whitbread rose 1.6% each.
Bucking the trend, miners were not strong. Randgold Resources and Fresnillo fell 0.8% and 0.7%, respectively. BHP Billiton fell marginally.
The Asian stocks rose broadly as the market rebound in China entered a third day and investors clung to hopes that an 11th-hour deal would be struck between Greece and its international creditors.
In the US, futures point to a higher open on Wall Street. In the previous session, the Dow and the S&P 500 rose about 1.2% each, while the tech-heavy Nasdaq advanced 1.5%.
Crude for August delivery fell USD0.35 to USD52.39 per barrel, while August gold dropped USD3.0 to USD1154.9 a troy ounce.
Copyright RTT News/dpa-AFX