European Markets Finished Solidly Higher On Greek Hopes

(RTTNews) - The European markets ended the first session of the new trading week solidly in the green, following the weakness of the previous trading week. Investor sentiment received a boost from the stronger than expected Eurozone economic sentiment and optimism for a resolution to the situation in Greece.

Greece will present a list of economic reform proposals to international creditors today after Prime Minister Alexis Tsipras' earlier reform plans met resistance from EU leaders. Tsipras said in remarks published Sunday he is looking for a "happy ending" in his current talks with EU creditors. "I am confident there will be a happy ending soon to this first phase of the negotiations, and to normalizing the situation," Tsipras said.

China on Monday relaxed rules on down payment requirements and housing tax for home buyers, as policymakers try to revive momentum in the slowing property market that poses risks to overall economic growth. The People's Bank of China said on its website that the minimum down payment requirement for buyers of second homes has been lowered to 40 percent from 60 percent.

Separately, the finance ministry announced that homeowners who have held a property for at least two years will be exempt from paying business taxes. Previously, only those who owned a property for at least five years were exempt from taxes.

Further, the central bank said first-time home buyers who borrow from the housing provident fund need to make a minimum down payment of 20 percent. Second-home buyers using the same facility will have to pay a minimum down payment of 30 percent. Both ratios were lowered from the previous levels.

The Euro Stoxx 50 index of eurozone bluechip stocks increased by 1.37 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 1.19 percent.

The DAX of Germany climbed by 1.83 percent and the CAC 40 of France rose by 0.98 percent. The FTSE of the U.K. gained 0.53 percent and the SMI of Switzerland finished higher by 1.31 percent.

In Frankfurt, Adidas increased by 1.14 percent. Kepler Cheuvreux raised its rating on the stock to "Buy" from "Hold."

Infineon Technologies was the top performer, with a gain of 4.20 percent.

Deutsche Bank advanced by 2.39 percent and Commerzbank added 1.44 percent.

Daimler finished up by 2.70 percent and BMW rose by 1.64 percent. Volkswagen also climbed by 2.17 percent.

In Paris, Peugeot increased by 3.68 percent and Renault added 2.86 percent.

Societe Generale finished higher by 2.18 percent and Credit Agricole gained 2.09 percent. BNP Paribas also rose by 1.90 percent.

In London, Kingfisher climbed by 2.01 percent, after it announced that its proposed acquisition of Mr. Bricolage has collapsed.

WPP advanced by 1.17 percent, after UBS increased its price target on the stock.

Compass Group finished up by 1.02 percent, after it issued a trading update. The company stated that it expects revenue growth of 5.5 percent for the first half of the year.

Eurozone economic sentiment rose for the fourth successive month to its highest level in nearly four years as lower oil prices, weak euro and measures of the central bank boosted confidence among firms and consumers, survey figures from the European Commission showed Monday.

The economic sentiment index climbed more-than-expected to 103.9 from 102.3 in February, which was revised from 102.1. Economists had expected a score of 103. The latest reading was the strongest since July 2011, when it was 104.

Germany's consumer prices increased for the second straight month in March, preliminary data from the statistical office Destatis showed Monday. Consumer prices rose 0.3 percent from last year after increasing 0.1 percent in February. The annual increase came in line with expectations.

Italy's consumer confidence and business confidence climbed strongly in March, strengthening hopes of recovery in the economy, survey data from ISTAT showed Monday. The consumer confidence index rose to 110.9 from 107.7 in February, marking its highest level since May 2002, the agency said. The index increased for a third consecutive month.

Switzerland's leading index, which measures the future economic activity, increased more-than-expected in March, after falling in the previous two months, survey figures from the Swiss Economic Institute KOF showed Monday.

The KOF economic barometer rose slightly by 0.5 points to 90.8 in March from a revised 90.3 in the previous month. Economists had expected the index to climb to 90.3 from February's original score of 90.1.

The U.K. mortgage approvals rose to a 6-month high in February, the Bank of England reported Monday. The number of mortgages approved for house purchases rose to 61,760 in February from 60,707 in January. This was the highest since August and above the expected level of 61,000.

Optimism among British financial services firms rose to its highest level in more than a year in the first quarter as profitability improved in most sectors despite weak growth in business volumes, results of a survey by the Confederation of British Industry revealed Monday.

The latest CBI/PwC Financial Services Survey showed that 59 percent of financial services firms were more optimistic than three months ago, while 9 percent were less optimistic. That gave a balance of +50 percent, which was the strongest since December 2013 when it was +68 percent.

Personal income in the U.S. increased by slightly more than expected in the month of February, according to a report released by the Commerce Department on Monday, although the report also showed that personal spending rose by less than anticipated.

The Commerce Department said personal income climbed by 0.4 percent in February, matching the upwardly revised increase seen in January. Economists had been expecting income to rise by 0.3 percent, which would have matched the growth originally reported for the previous month.

Meanwhile, the report also showed that personal spending inched up by 0.1 percent in February after dipping by 0.2 percent in January. Spending had been expected to edge up by 0.2 percent.

Pending home sales in the U.S. increased by much more than expected in the month of February, according to a report released by the National Association of Realtors on Monday, with pending sales jumping to their highest level in twenty months.

NAR said its pending home sales index surged up 3.1 percent to 106.9 in February after climbing 1.2 percent to a slightly downwardly revised 103.7 in January. Economists had expected the index to edge up by 0.3 percent.