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European stocks rise on Greece hopes, Fed; Dax up 0.55%

Published 03/20/2015, 04:40 AM
Updated 03/20/2015, 04:40 AM
© Reuters.  European stocks gain ground as focus returns to Greek debt

Investing.com - European stocks were higher on Friday, amid new hopes for progress on the Greek debt front and as the Federal Reserve's latest policy statement continued to support.

During European morning trade, the EURO STOXX 50 rose 0.25%, France’s CAC 40 added 0.15%, while Germany’s DAX 30 climbed 0.55%.

Market sentiment found some support after European Union leaders said earlier Friday that Greece has agreed to establish a new reform plan in the coming days to secure the additional bailout funds required to prevent the country's bankruptcy.

Ahead of the talks, European Parliament President Martin Schulz had warned that Greece’s financial situation was "dangerous", with debt payments looming.

Equity markets also remained supported after the Fed indicated on Wednesday that U.S. economic growth has moderated and that interest rates will rise at a slower pace than previously forecast.

The Fed dropped a reference to being "patient" on the timing of rate hikes, but added that the change in its forward guidance did not mean it has decided on the timing for an initial rate increase.

Financial stocks were broadly higher, as French lender BNP Paribas (PARIS:BNPP) rose 0.34%, while Germany's Commerzbank (XETRA:CBKG) and Deutsche Bank (XETRA:DBKGn) gained 0.34% and 0.69%.

Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) edged up 0.10% and 0.20% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) added 0.11% and 0.22%.

Elsewhere, French cement maker Lafarge (PARIS:LAFP) saw shares surge 3.35% after it reached an agreement with Swiss counterpart Holcim (SIX:HOLN) to salvage a $40 billion merger to form the world’s biggest cement company.

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Shares in Holcim were up 1.12% following the news.

In London, FTSE 100 edged up 0.09%, led by CRH (LONDON:CRH), up 3.91%, as the building materials group agreed to buy assets from Lafarge and Holcim.

Meanwhile, financial stocks were mostly lower. Shares in HSBC Holdings (LONDON:HSBA) dipped 0.01% and Barclays (LONDON:BARC) dropped 0.42%, while the Royal Bank of Scotland (LONDON:RBS) declined 0.66%. Lloyds Banking (LONDON:LLOY) overperformed however, edging up 0.09%.

TSB Banking Group (LONDON:TSB) rallied 1.94% after Banco de Sabadell agreed to buy it for £1.7 billion.

In the mining sector, stocks were on the downside. Bhp Billiton (LONDON:BLT) saw shares slide 0.46% and Rio Tinto (LONDON:RIO) retreated 0.56%, while rivals Anglo American (LONDON:AAL) and Glencore Xstrata (LONDON:GLEN) plummeted 1.24% and 1.41% respectively.

In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.38% rise, S&P 500 futures signaled a 0.26% gain, while the Nasdaq 100 futures indicated a 0.28% increase.

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