European stock markets rose on Tuesday, after euro-zone finance ministers early in the morning struck a deal on reducing Greece’s debt, unblocking the way for the country’s next financial-aid disbursement in December.
The Stoxx Europe 600 index rose 0.5% to 272.37, after snapping a five-day winning streak the prior day.
Shares of Royal Bank of Scotland Group PLC posted one of the biggest gains, up 3.7%, after UBS lifted the shares to buy from neutral.
In the same vein, shares of SBM Offshore NV jumped 5.4%, as Barclays raised its recommendation on the firm to overweight from underweight, saying the current share price has “overshot on the downside.”
Broader stock markets welcomed news from Brussels that the Eurogroup, the European Central Bank and the International Monetary Fund agreed on measures to bring Greece’s debt down to a sustainable level, a necessary move to pay out the country’s next tranche of bailout money.
The Eurogroup said in a statement after its meeting that it would be prepared to lower interest rate on Greece’s bailout loans and defer interest payments by a decade among other things. The deal was expected to pave the way for further aid disbursements to Greece, with the first installment of 34.4 billion euros ($44.67 billion) on tap in December.
Risk-sensitive sectors, such as banks and resource firms, led the relief rally.
Germany’s Commerzbank AG jumped 3% and Deutsche Bank AG added 2.3%. The DAX 30 index traded 0.7% higher at 7,338.83.
And in France, shares of Credit Agricole SA and Société Générale SA both picked up 2%.
Heavyweight oil group Total SA inched 0.3% higher, tracking a gain in oil prices.
The CAC 40 index gained 0.7% to 3,526.35.
Shares of resource firms were also on the rise in the U.K. BP PLC shares picked up 0.5%, while those of miner Rio Tinto PLC gained 0.9%.
The FTSE 100 index rose 0.6% to 5,819.63.
Marketwatch
