By Carla Mozee, MarketWatch
Eurozone quarterly growth above expectations
LONDON (MarketWatch) -- European stocks hit a fresh seven-year
high Friday, finding support after a better-than-expected reading
of economic growth in Germany, considered the powerhouse of the
European economy.
The German DAX marked a milestone, jumping above the 11,000
level for the first time after Destatis data showed gross domestic
product in Germany was 0.7% higher in the fourth quarter than the
prior quarter. That official reading outstripped the 0.3%
projection from a FactSet poll of analysts. The index was most
recently up 0.6% at 10,986.54.
Advancers on the DAX were led by Deutsche Bank AG (DB) and
Commerzbank AG . Shares in those German banks rose 3.1% and 2.9%,
respectively.
The gains for the German benchmark helped lift the Stoxx Europe
600 by 0.6% to 377.07. The pan-European index added to gains after
data showed the eurozone's GDP grew 0.3% in the fourth quarter,
above expectations of 0.2% growth.
The euro (EURUSD) slipped after the eurozone GDP report, to
$1.1411 compared with $1.1435 ahead of the data. But it was up from
late Thursday's level of $1.404.
France's CAC rose 0.7% to 4,759.36, pushed higher although the
country's GDP figure was disappointing compared with Germany's
figure. Growth in the eurozone's second-largest economy was just
0.1% in the fourth quarter. In London, the FTSE 100 gained 0.7% to
6,873.52, and ended up 0.3% for the week.
Meanwhile, Greece's economy contracted 0.2% in the fourth
quarter. The Athex Composite still held to an advance after the
report, rising 5.6% to 893.98, with shares of Attica Bank SA
climbing 13%. Piraeus Bank SA rose 12.5% and National Bank of
Greece SA jumped 16%. Bank stocks extended gains from Thursday when
the European Central Bank raised the amount of emergency assistance
that can be provided to Greek banks by 5 billion euros ($5.7
billion), to EUR65 billion.
Greek officials had been slated to meet with representatives of
the country's international creditors on Friday, ahead of Monday's
meeting of eurozone finance ministers. Discussions aimed at
resolving Greek's debt troubles ended in a deadlock between Greek
officials and eurozone finance ministers earlier this week.
Greece's current EUR240 billion bailout agreement is set to expire
Feb. 28.
German Chancellor Angela Merkel said Thursday it is possible
that Greece and its creditors can reach a deal, but she also
stressed that Greece needs to ask for an extension of its bailout
or show that terms attached to the program can be implemented by
the end of February.
The view that compromise may be possible "coming from somebody
of [Merkel's] stature ... that's pretty significant," said Jameel
Ahmad, chief market analyst at FXTM. "But there's been no progress
other than comments and that's what's making me apprehensive ...
we're still some time away from making a deal."
The Stoxx 600 closed the week higher by 1%, largely stemming
from Thursday's session that ended at a more than seven-year high
after European leaders reached an agreement to revive a cease-fire
in Ukraine, starting Sunday.
Merkel said Thursday that if the cease-fire doesn't hold, the
European Union may opt to introduce further sanctions, adding to
those that have already been imposed on Russia and pro-separatists
in eastern Ukraine and Crimea.
Russia's Micex ended up 2% at 1,838.18.
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