European Stocks Rally On Hopes For Greece Deal

(RTTNews) - European stocks rose to their highest in seven years Wednesday amid diminished concerns of an imminent Greek exit from the euro zone.

Eurozone finance ministers granted Greece time until Friday to apply for extension. Greek officials have said they will apply on Thursday.

The current 240 billion euros Greek bailout program will expire on February 28.

Greek banks rallied on hopes of a deal. Piraeus Bank added 4.9 percent and National Bank of Greece added close to 7 percent.

The Euro Stoxx 50 index of eurozone bluechip stocks added 0.8 percent. The German DAX rose 0.6 percent and the French CAC 40 gained nearly 1 percent. The FTSE 100 index of the U.K. was flat, however, and Switzerland's SMI was up 0.6 percent.

Credit Agricole climbed 7 percent. The lender reported increased profit in its fourth quarter, benefited by lower operating expenses and cost of risk, even as revenues were hurt due to lackluster economic climate.

Hotel company Accor SA, said 2014 profit climbed 16 percent after the French company cut costs and saw increased international demand. Shares rose 2.2 percent.

Clariant rose 1.8 percent in Zurich. The specialty chemicals maker reported increased quarterly profit, and lifted its dividend.

Danish brewer Carlsberg said that President and CEO Jørgen Buhl Rasmussen, will retire.

Eurozone construction output declined for the second straight month in December, at a faster pace, figures from Eurostat showed.

Production in construction fell 0.8 percent month-on-month in December, following a 0.5 percent drop in November, which was revised from a 0.1 percent decrease. In October, production had risen 1.0 percent.

The U.K. unemployment rate fell unexpectedly in the October to December period, data from the Office for National Statistics showed. The jobless rate fell to 5.7 percent from 5.8 percent in the September to November period. Economists had forecast the rate to remain at 5.8 percent.