Investing.com - European stocks were higher on Monday, as news of a deal to extend Greece’s bailout by four months supported equity markets and as investors eyed an upcoming report on Germany's business climate.
During European morning trade, the EURO STOXX 50 advanced 0.80%, France’s CAC 40 gained 0.64%, while Germany’s DAX 30 climbed 0.68%.
European equities strengthened on Friday after the euro zone approved the extension of Greece’s €240 billion bailout, removing concerns that the country would face a liquidity crunch when its current bailout agreement expired at the end of the month.
Markets have been hit by growing concerns over a possible Greek exit from the euro area if the country missed a debt payment.
Athens has until Monday to present a list of reforms to be approved by the country’s creditors in order to secure the four-month bailout extension, which will give it more time to reach a lasting agreement with its creditors.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) jumped 1.23% and 2.01%, while Germany's Commerzbank (XETRA:CBKG) rallied 1.20%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) advanced 1.21% and 1.26% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) climbed 1.26% and 1.28%.
Elsewhere, Holcim (SIX:HOLN) gained 0.48% after the Swiss cement maker reported fourth-quarter earnings above analysts' estimates and said cement volumes will accelerate outside of Europe.
In London, commodity-heavy FTSE 100 inched up 0.02% but gains were capped by sharp losses in the mining sector.
Mining giants Glencore Xstrata (LONDON:GLEN) and Bhp Billiton (LONDON:BLT) tumbled 0.70% and 1.99% respectively, while Fresnillo (LONDON:FRES) plummeted 2.24% and Anglo American (LONDON:AAL) lost 2.47%.
In the financial sector, stocks were mostly higher. Shares in the Royal Bank of Scotland (LONDON:RBS) edged up 0.16% and Barclays (LONDON:BARC) climbed 0.56%, while Lloyds Banking (LONDON:LLOY) rallied 1.13%.
HSBC Holdings (LONDON:HSBA) underperformed however, with shares plunging 3.06% after the bank confirmed that its chief executive Stuart Gulliver uses a Swiss bank account to hold his bonuses. The news came after the Guardian reported that Gulliver has £5 million in the account which he controls using a Panamanian company.
In the U.S., equity markets pointed to a steady to lower open. The Dow Jones Industrial Average futures pointed to a 0.12% loss, S&P 500 futures signaled a 0.14% fall, while the Nasdaq 100 futures indicated a 0.01% dip.
Later in the day, the U.S. was to publish a report on existing home sales.