European Markets Finished Mostly Higher On Greek Hopes

(RTTNews) - The majority of the European markets ended Friday's session in the green, after recovering from early losses. The markets got off to a weak start after Thursday's Eurogroup meeting ended without an agreement, leading European finance ministers to schedule another session on Saturday.

German Chancellor Angela Merkel said the weekend's talks will be "decisive," noting that time is quickly running out.

Merkel told reporters early Friday that European leaders "agreed that everything must be done to find a solution on Saturday."

The markets bounced back in the afternoon on reports that Greece's creditors have proposed a five-month extension of its current bailout programme if the government agrees to a set of reforms. The country's massive EUR 240 billion bailout will be extended till the end of November, when a total EUR 12 billion aid will be offered.

According to reports, Greece may be given EUR 1.8 billion as the first tranche to meet a EUR 1.6 billion payment due to the International Monetary Fund on June 30. However, the disbursement will be possible only if the Greek parliament approves the proposal and adopts first set of reforms. The offer will also require approval from other euro zone parliaments.

Eurozone banks' lending to private sector grew at the fastest pace in more than three years in May indicating that demand for credit has also started to recover with economic growth.

Loans to the private sector increased 0.5 percent in May from last year after staying flat in April and gaining 0.1 percent in March, the European Central Bank reported Friday. This was the fastest expansion since early 2012.

The Euro Stoxx 50 index of eurozone bluechip stocks increased by 0.45 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.14 percent.

The DAX of Germany climbed by 0.17 percent and the CAC 40 of France rose by 0.35 percent. The FTSE of the U.K. declined by 0.79 percent and the SMI of Switzerland finished lower by 0.42 percent.

In Frankfurt, Infineon Technologies fell by 0.29 percent. U.S. chipmaker Micron Technology reported a 39 percent drop in third-quarter profit, hurt by lower selling prices of chips used in personal computers.

Shares of potash producer K+S surged by 29.62 percent, after the company confirmed that it had received a takeover offer from Canadian fertilizer producer Potash Corp. of Saskatchewan.

Deutsche Bank advanced by 1.42 percent and Commerzbank rose by 0.75 percent.

In Paris, Peugeot climbed by 1.44 percent and Renault added 0.73 percent. Valeo also finished higher by 1.65 percent.

In London, Tesco increased by 2.71 percent, after the supermarket retailer reported first-quarter sales that fell less than analysts had expected.

Wm Morrison Supermarkets climbed by 0.60 percent and J. Sainsbury added 0.69 percent.

ARM Holdings tumbled by 5.05 percent, after Bernstein downgraded its rating on the stock to "Underperform" from "Market Perform."

Mining stocks turned in a weak performance, due to weakness in metal prices. Anglo American dropped by 3.54 percent and BHP Billiton fell by 0.58 percent. Glencore also declined by 2.56 percent.

The eurocoin indicator, which measures the current economic situation in the euro area, rose for the seventh consecutive month in June, a survey by the Bank of Italy and the Centre for Economic Policy Research showed Friday. The eurocoin indicator increased to 0.39 in June from 0.38 in the previous month. In April, the score was 0.33.

France's consumer confidence held steady for the second straight month in June, survey data from the statistical office INSEE showed Friday. The consumer confidence came in at 94 in June, the same reading as in the previous two months. The May figure was revised from 93. Economists had expected the index to remain same at 93.

Germany's import prices dropped at a faster-than-expected pace in May, figures from Destatis showed Friday. Import prices slid 0.8 percent year-over-year in May, faster than previous month's 0.6 percent decrease. Economists had expected a 0.4 percent fall for the month.

Italy's consumer confidence improved unexpectedly in June and business sentiment rose more-than-expected, survey figures from ISTAT showed Friday. The consumer confidence index rose to 109.5 in June from 106.0 in the previous month, revised up from 105.7. Economists had expected the index to fall to 105.6.

House prices in England and Wales climbed at the slowest annual pace in seventeen months in May, figures from the Land Registry revealed Friday. The house price index rose 4.6 percent year-on-year following 5.1 percent gain in April. The latest increase was the smallest since December 2013, when prices increased 4.3 percent. House price inflation eased for the ninth successive month in May.

Consumer sentiment in the U.S. has improved by even more than previously estimated in the month of June, according to a report released by the University of Michigan on Friday. The report said the consumer sentiment index for June was upwardly revised to 96.1 from the mid-month reading of 94.6.

Economists had expected the index to be unrevised from the preliminary reading, which was already up sharply from the final May reading of 90.7.