European Markets Rebounded From Friday's Weakness

(RTTNews) - The European markets bounced back from their losses at the end of the previous trading week Monday, which were caused by investor uncertainty. The better than expected U.S. jobs report for June left investors wondering if Fed stimulus tapering would begin sooner rather than later. An agreement has been reached between Greece and the troika of lenders ahead of the meeting of euro area finance ministers in Brussels. Investors will also be watching for the release of quarterly results by aluminum company Alcoa later today, which is viewed as the unofficial beginning of the U.S. reporting season.

The Greek authorities reached an accord with the troika on economic reforms that are required to unlock next tranche of bailout fund, the European Commission said in a joint statement on Monday, just hours ahead of the Eurogroup meeting.

The troika that comprises the European Union, the European Central Bank and the International Monetary Fund, agreed that the macroeconomic outlook remains broadly in line with program projections, with prospects for a gradual return to growth in 2014.

However, the outlook remains uncertain, it said. Eurozone ministers at their meeting in Brussels later today will formally decide whether to release the next tranche of EUR 8.1 billion aid to Greece. The aid funds are crucial for Athens to repay its bonds in August. The authorities committed to a number of tax reforms to secure the fund.

The Bank of France on Monday lifted growth outlook for the second quarter to 0.2 percent from 0.1 percent. A monthly survey showed that business sentiment improved in June as production in most sectors returned to growth. Moreover, the pace of foreign orders accelerated on the back of stronger demand from abroad. Business managers are expecting a further rise in activity in July.

The Euro Stoxx 50 index of eurozone bluechip stocks increased by 2.07 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 1.39 percent.

The DAX of Germany climbed by 2.08 percent and the CAC 40 of France advanced by 1.86 percent. The FTSE 100 of the U.K. rose by 0.44 percent and the SMI of Switzerland gained 1.05 percent.

In Frankfurt, chipmaker Infineon Technologies increased by 2.57 percent. Kepler Cheuvreux upgraded the stock to ''Hold'' from ''Reduce.''

BMW gained 2.48 percent, after reporting a 6 percent increase in group sales during the first half of the year. Volkswagen rose by 1.43 percent and Daimler added 2.01 percent.

Aixtron dipped by 6.52 percent. The stock was reduced to ''Sell'' from ''Hold'' at DZ Bank.

Evotec climbed by 1.69 percent. Evotec said its research alliance with Boehringer Ingelheim reached a milestone in June triggering revenues of 1.5 million euros. The milestone was for the transition of a pain molecule into pre-clinical development.

In Paris, Renault rose by 1.26 percent and Peugeot added 2.28 percent.

In London, BP increased by 1.42 percent. A federal appeals court will hear BP's case, which disputes the multi-billion dollar settlement of Gulf oil spill-related claims.

Royal Bank of Scotland gained 4.37 percent. Lloyds Banking advanced by 3.82 percent, HSBC added 0.69 percent and Standard Chartered rose by 1.02 percent.

Bovis Homes gained 7.10 percent, after issuing a trading statement.

Hikma Pharma, which upped its full year revenue forecast, surged by 5.63 percent.

Investec upgraded Anite to ''Buy'' from ''Hold.'' The stock rose by 2.84 percent.

Swiss Re advanced by 1.64 percent in Zurich. The insurer estimates a claims burden of $300 million from the recent flooding in central and eastern Europe, net of retrocession and before tax.

Eurozone investor confidence deteriorated in July after rising for two consecutive months, survey results from think-tank Sentix showed Monday. The investor confidence index fell to -12.6 in July from -11.6 in June, also worse-than the expected reading of -11.7.

German industrial production declined more than expected in May due to notable decline in construction and energy output, the Federal Ministry of Economics and Technology said Monday. Industrial output fell 1 percent in May from the previous month, the steepest since October 2012. Economists expected the production to fall 0.5 percent after rising 2 percent in April.

German trade surplus declined in May due to an unexpected sharp decline in exports, together with faster growth in imports, data published by Destatis showed Monday.

Mirroring weak global demand, exports dropped 2.4 percent month-on-month, confounding expectations for a 0.1 percent rise. This reversed the 1.4 percent increase in April.

Meanwhile, imports grew at a faster pace of 1.7 percent after rising 1.2 percent a month ago. Imports were forecast to remain flat in May.

Due to the fall in exports, the trade surplus fell to EUR 13.1 billion from EUR 18 billion in April. Economists had expected a more modest decline in surplus to EUR 17.6 billion.

Permanent staff appointments in the U.K. Increased at the fastest pace in twenty-six months in June, a report published by the Recruitment and Employment Confederation and KPMG showed Monday.