European Markets Surged On Greek Optimism

(RTTNews) - The European markets rallied Tuesday on investor hopes for a Greek debt deal. Greek Finance Minister Yanis Varoufakis expressed optimism that a deal between Greece and Europe regarding the country's bailout program will soon be reached. The economist-turned-finance minister ruled out accepting more bailout cash while hinting that he had a solution to end the confrontation with international creditors.

The Greek Government may not accept any more loans as it struggles to wean off debts. After meeting French Finance Minister Michael Sapin, Varoufakis said Greece was like a drug addict craving the next dose. He added that his government has decided to end the addiction. Sapin has noted that France will not support cancellation of Greece's debt.

Varoufakis will meet with European Central Bank President Mario Draghi in Frankfurt on Wednesday and will meet with German Finance Minister Wolfgang Schäuble in Berlin on Thursday.

The European Central Bank is considering a withdrawal from the group reviewing the bailout programme of Greece, German daily Handelsblatt reported on Tuesday. The International Monetary Fund also prefers to leave the troika, the report said. If both ECB and IMF leave the group, then the European Commission will be the sole member in troika.

Energy stocks were again among the top performing European stocks Tuesday. The price of oil has climbed back above the key $50 a barrel level amid mounting speculation that non-OPEC nations plan to cut production.

The Euro Stoxx 50 index of eurozone bluechip stocks increased by 1.38 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.73 percent.

The DAX of Germany climbed by 0.58 percent and the CAC 40 of France rose by 1.09 percent. The FTSE of the U.K. gained 1.32 percent and the SMI of Switzerland finished higher by 0.27 percent.

In Frankfurt, Tom Tailor Holding surged by 12.38 percent. The fashion group returned to a profit in 2014 for the first time since acquiring the Bonita brand in 2012.

Commerzbank climbed by 3.71 percent and Deutsche Bank added 3.62 percent.

RWE declined by 4.49 percent and E.ON fell by 3.92 percent.

In Paris, Areva decreased by 0.30 percent, after the nuclear group warned of a significant increase in provision and write-downs in its 2014 accounts.

Total advanced by 2.72 percent and Technip rose by 3.36 percent.

Societe Generale finished higher by 4.60 percent. Credit Agricole gained 3.24 percent and BNP Paribas added 2.56 percent.

In London, CRH increased by 1.63 percent. Societe Generale upgrade its rating on the stock to "Buy" from "Hold."

BP rose by 2.78 percent, after it reported a pre-tax loss of $8.078 billion for the fourth quarter, compared to pre-tax profit of $1.199 billion last year. BP also announced a quarterly dividend of 10 cents per ordinary share.

BG Group gained 1.16 percent. The company's fourth quarter pretax loss widened to $8.33 billion from $1.58 billion a year ago.

Tullow Oil increased by 4.61 percent and Royal Dutch Shell added 4.52 percent.

Alfa Laval AB climbed by 1.42 percent in Stockholm. The engineering group reported fourth-quarter net income of 911 million Swedish kronor, up from 871 million kronor last year.

Banco Santander gained 4.60 percent in Madrid, after the lender reported a healthy rise in 2014 profit, aided by a decline in provisions for bad loans.

Eurozone producer prices declined at the fastest pace in five years during December, figures from Eurostat showed Tuesday. Producer prices fell 2.7 percent year-on-year in December, faster than 1.6 percent decline in the previous month. Economists had forecast a 2.5 percent fall for the month.

Germany's engineering orders increased in December from last year, the VDMA German Engineering Association said Tuesday. Overall engineering orders grew 13 percent year-on-year in December, the industry group said in Frankfurt. Domestic sales were up 8 percent, while foreign orders surged 15 percent.

U.K' s construction sector expansion quickened unexpectedly in January, survey data from Markit Economics showed Monday. The Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index rose to 59.1 in January from the seventeen month low of 57.6 in December. The score was forecast to fall to 57 in January.

In the latest sign of trouble for the manufacturing industry, the Commerce Department released a report on Tuesday showing a sharp drop in new orders for U.S. manufactured goods in the month of December. The Commerce Department said factory orders tumbled by 3.4 percent in December, exceeding the 2.2 percent drop forecast by economists.