European Markets Climbed On Greek Resolution Relief

(RTTNews) - The majority of the European markets climbed Monday. Investors breathed a collective sigh of relief after Greece secured a four month extension to its bailout agreement. The Greek markets was closed today for the Ash Monday holiday. Investors managed to shrug off a weaker than expected read on German business confidence, as well as the disappointing U.S. existing home sales report.

After meetings in Brussels, Greece has reached an agreement with eurozone creditors to extend its bailout agreement for four months. The agreement will help Greece avoid an economic crash and an ouster from the Eurozone. Greek finance minister Yanis Varoufakis has pledged to honour all debts and initiate reform to bring back the country to a financial stability. The minister added that the country would continue with painful reforms.

The bailout program for Greece was due to expire on February 28. The doubts about reaching a deal have forced customers of local banks to transfer their money out of Greece. There were reports that millions of euros were moved out in the last week.

Federal Reserve Chair Janet Yellen will begin two days of testimony before the House and Senate on Tuesday. Some traders likely remained on the sidelines ahead of her comments.

The Euro Stoxx 50 index of eurozone bluechip stocks increased by 0.72 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.49 percent.

The DAX of Germany climbed by 0.73 percent and the CAC 40 of France rose by 0.65 percent. The FTSE of the U.K. fell by 0.16 percent, but the SMI of Switzerland finished higher by 0.96 percent.

In Frankfurt, Merck increased by 2.22 percent and Bayer rose by 1.45 percent. Deutsche Boerse also added 2.72 percent.

Fresenius Medical Care climbed by 1.40 percent and Fresenius gained 1.22 percent.

In Paris, Lafarge finished higher by 1.03 percent. Swiss peer Holcim, which is being acquired by the French cement giant, announced financial results. Holcim rose by 1.11 percent in Zurich.

Technip dropped by 1.46 percent, but Total rose by 0.55 percent.

Essilor International finished up by 2.21 percent and Sanofi gained 1.90 percent.

In London, HSBC sank by 4.63 percent, after it reported a lower full year profit.

Antofagasta dropped by 2.79 percent, after it reduced its 2015 cash-cost forecast.

Bunzl gained 1.14 percent. The company announced increased full year profit as well as two acquisitions.

German business confidence improved for a fourth consecutive month in February to its highest level in seven months, but the pace of strengthening was modest amid concerns over the uncertainty surrounding the Greek situation.

The Ifo Business Climate climbed to 106.8 from January's 106.7. Economists had forecast a stronger score of 107.6. The latest reading, however, was the best since July last year, when it was 108.1.

British retail sales growth eased sharply in February to its weakest level since late 2013, after six months of robust performance, survey data from the Confederation of British Industry revealed Monday. The balance of the CBI's distributive trades survey dropped to +1 from +39 in January. Economists were looking for a figure of +35.

Existing home sales in the U.S. fell by more than anticipated in the month of January, according to a report released by the National Association of Realtors on Monday. NAR said existing home sales tumbled 4.9 percent to an annual rate of 4.82 million in January from an upwardly revised 5.07 million in December.

Economists had expected existing home sales to fall to a rate of 4.95 million from the 5.04 million originally reported for the previous month.