European Markets Climbed On Chinese Stimulus

(RTTNews) - The European markets finished in the green Monday, bouncing back from the weakness at the end of the previous trading week. Investors continue to be concerned over the situation in Greece, but were thrilled by the announcement that China's reserve requirement ratio was reduced by 100 basis points Sunday, the biggest such cut since the financial crisis.

The People's Bank of China lowered the amount set aside by banks as reserves to 18.5 percent effective Monday. This was the second reduction this year, an action taken after the economy logged its weakest growth in six years.

Greek banks may soon run out of collateral to access European Central Bank refinancing unless Athens reaches a deal over the release of another 7.2 billion euros in bailout funds from the European Union, France's central bank chief said. A meeting of euro-area finance ministers will be held in Latvia on April 24.

Despite disappointing data the upswing process in Germany has not been interrupted, the Bundesbank said in its monthly report on Monday.

Nonetheless, economic growth is likely to be slower than in the fourth quarter of 2014, when it expanded 0.7 percent.

Private consumption is likely to remain the main driver of the strong economic growth, it said. The bank expects the exceptionally favorable consumer climate to last for some time.

The U.K. economy will weather the election storm in relatively good shape, helped by 'noflation' and a strengthening Eurozone, and any interest rate increases will be off the agenda until spring 2016, the Ernst & Young's ITEM Club said in a report.

The economy was forecast to grow 2.8 percent in 2015, but slightly weaker than the 2.9 percent expansion projected three months ago, the think tank said in its latest Spring Forecast published Monday.

For 2016, the ITEM Club projected 3 percent growth. The economy was forecast to expand 2.7 percent each in 2017 and 2018.

The Euro Stoxx 50 index of eurozone bluechip stocks increased by 1.12 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.80 percent.

The DAX of Germany climbed by 1.74 percent and the CAC 40 of France rose by 0.86 percent. The FTSE of the U.K. gained 0.80 percent, but the SMI of Switzerland finished lower by 0.02 percent.

In Frankfurt, Commerzbank increased by 2.61 percent and Deutsche Bank rose by 1.74 percent.

Daimler finished higher by 2.05 percent and BMW gained 1.00 percent.

In Paris, Societe Generale rose by 2.45 percent. BNP Paribas gained 1.74 percent and Credit Agricole climbed by 1.23 percent.

Peugeot advanced by 0.49 percent and Renault finished up by 0.36 percent.

In London, mining stock climbed on the Chinese stimulus news. BHP Billiton increased by 2.46 percent and Anglo American added 2.72 percent. Rio Tinto advanced by 2.61 percent and Antofagasta gained 2.05 percent.

Aveva, which issued a trading update, fell by 1.63 percent.

UniCredit advanced by 3.59 percent in Milan. The company's CEO stated Saturday that UniCredit is close to a deal to combine its asset management business with that of Banco Santander. Santander finished up by 0.40 percent in Madrid.

Eurozone construction output declined for the first time in three months in February, Eurostat reported Monday. Construction output fell 1.8 percent in February from January, when it grew 1.6 percent. This was the first fall in three months and the biggest drop since September.

Germany's producer prices declined at a faster-than-expected pace in March, figures from Destatis showed Monday. The producer price index fell 1.7 percent year-over-year in March, surpassing economists' expectations for a 1.6 percent decrease.

The average asking price for a house in the United Kingdom was up 1.6 percent on month in April, property tracking website Rightmove said on Monday, coming in at a record 286,133 pounds. That follows the 1.0 percent increase in March.