European Markets Climbed On Greek Deal & Alcoa Results

(RTTNews) - The majority of the European markets finished in positive territory Tuesday, adding to yesterday's gains. Investors were relieved after an aid package for Greece received approval, while the bigger than expected increase in Chinese inflation has investors hoping for further policy action. Investors were also encouraged by the better than expected earnings report by Alcoa late Monday. The aluminum company's report is views as the unofficial start to the U.S. reporting season.

Eurozone finance ministers on Monday approved the payment of EUR 3 billion of aid package to Greece in two tranches, but on strict conditions to restructure the economy.

The first tranche of EUR 2.5 billion will be paid this month and the remaining EUR 0.5 billion in October. Athens has to fulfill its agreed commitments in July itself.

At the meeting in Brussels, Eurozone finance ministers, collectively known as the Eurogroup, said significant further work is needed over the next weeks to fully implement all prior actions required for the next disbursement. Accordingly, reforms are needed on public administration and tax revenue collection.

Chinese inflation accelerated more-than-expected on food prices in June. Nonetheless, the below-target inflation and negative producer price inflation underscore the economic weakness, providing scope for policy actions.

Inflation accelerated to 2.7 percent in June from 2.1 percent a month ago, a report from the National Bureau of Statistics showed Tuesday. The rate also exceeded the 2.5 percent forecast by economists.

The Euro Stoxx 50 index of eurozone bluechip stocks increased by 0.57 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.89 percent.

The DAX of Germany climbed by 1.12 percent and the CAC 40 of France advanced by 0.52 percent. The FTSE 100 of the U.K. rose by 0.98 percent and the SMI of Switzerland gained 1.03 percent.

In Frankfurt, Commerzbank increased by 4.35 percent and Deutsche Bank added 0.96 percent.

Siemens gained 0.82 percent, after Deutsche Bank upgraded the stock to ''Hold'' from ''Sell.''

In Paris, EDF surged by 9.26 percent due to reports of tariff increases by utilities. UBS upgraded the stock to "Neutral" from "Sell."

LVMH advanced by 2.06 percent. The luxury goods giant has agreed to buy an 80 percent stake in Italian luxury cashmere clothing company Loro Piana for 2 billion euros.

JPMorgan reinitiated Vivendi with an ''Overweight'' rating. The stock climbed by 1.58 percent.

In London, Royal Bank of Scotland gained 5.49 percent. HSBC climbed by 1.12 percent and Barclays added 1.51 percent.

Royal Dutch Shell finished up by 1.53 percent after, announcing a new chief executive.

Marks & Spencer declined by 1.41 percent. The company announced first-quarter sales growth with a decline in like-for-like sales in the general merchandise category.

Weir Group advanced by 2.76 percent, after Morgan Stanley upgraded the stock to "Equal weight" from "Underweight."

Mining stocks performed well, as metal prices continued to rise. Anglo American increased by 2.97 percent and BHP Billiton added 2.66 percent. Fresnillo climbed by 3.09 percent and Glencore Xstrata gained 2.56 percent. Rio Tinto advanced by 2.51 percent and Vedanta Resources surged by 8.53 percent.

Aveva surged by 13.67 percent, after it said it made a good start to the new year.

Henderson Group climbed by 7.52 percent, after issuing an interim management statement.

Stagnant industrial production, as well as a widening trade deficit, has raised concerns over the expected strength of the U.K. economic recovery. Industrial production remained flat in May from April, when it fell 0.1 percent, data from the Office for National Statistics showed Tuesday. Economists had forecast industrial output to grow 0.2 percent in May.

The deficit in the U.K.'s goods trade for May widened slightly from the same month last year, data from the Office for National Statistics showed on Tuesday. The visible trade deficit for May was GBP 8.491 billion compared to GBP 8.1 billion a year ago. Economists were looking for a GBP 8.485 billion shortfall. In April, the deficit was GBP 8.430 billion.

Retail sales in the United Kingdom increased in May, according to survey results released Tuesday by the British Retail Consortium. BRC said its sales monitor report showed an increase of 2.9 percent in overall retail sales in June compared to one year previous.

House prices in the United Kingdom rose in June. The Royal Institution of Chartered Surveyors reported Tuesday that its house price balance for June rose to a reading of Plus-21, and three-and-a-half year high. The reading follows a Plus-5 reading for May.