European markets gain on positive reports

European stocks climbed after a report showed the German economy accelerated.

The Stoxx Europe 600 Index added 0.6 per cent to 377.07 at the close of trading, paring gains of as much as 0.8 per cent. It extended a seven-year high as Greek and EU leaders signalled willingness to compromise on bailout terms. The measure gained 1.1 per cent this week for a second straight advance.

In Ireland, the Iseq Overall Index fell by 0.2 per cent, to 5,710.76.

DUBLIN

Bank of Ireland was the main mover on the day, up 5 per cent at 31.7 cent as about 100 million shares changed hands. Smurfit Kappa rose by just more than 2 per cent to €24.705 following an upgrade by Davy on foot of strong results this week.

Ryanair (down 3.5 per cent at €9.45) and Aer Lingus (1.8 per cent lower at €2.21) closed the day down, mirroring a trend for airline stocks across Europe.

EUROPE

The Stoxx 600 rose as optimism grew that a ceasefire agreement will help stem conflict in Ukraine and that Greece will reach a deal.

The benchmark gauge has jumped 10 per cent this year as the European Central Bank unveiled a €1.1 trillion asset-purchase plan.

Stocks have widened a gap with the euro on speculation that the ECB’s policies will help boost economic growth and corporate profits.

Greece's ASE Index rallied 5.6 per cent for the best performance among 18 western European markets. National Bank of Greece and Eurobank Ergasias jumped, pushing their weekly gains up at least 35 per cent.

Benchmark measures in Spain and Portugal advanced more than 1.6 per cent.

Among stocks that moved on corporate news, Anglo American gained 3.4 per cent after posting full-year earnings that beat analysts projections and writing down assets.

GlaxoSmithKline gained 4.5 per cent as UBS Group raised its recommendation on the drugmaker to buy from sell.

ThyssenKrupp lost 2.6 per cent as Germany's largest steelmaker reported quarterly earnings that missed analyst estimates. Seadrill slumped 9.6 per cent after the rig operator said it was removing $1.1 billion worth of contracts with Petroleo Brasileiro from its order book.

Mediaset fell 6.5 per cent after Silvio Berlusconi's Fininvest sold a 7.8 per cent stake in the broadcaster.

LONDON

UK stocks advanced to a five-month high as the economy in the euro area expanded more than forecast.

Tullow Oil and BHP Billiton climbed more than 5 per cent, pushing miners and energy producers higher. Anglo American rose 3.4 per cent after posting annual profit that exceeded analysts estimates.

The FTSE 100 Index added 45.41 points, or 0.7 per cent, to 6,873.52 at the close in London.

The economy in the euro zone expanded 0.3 per cent in the fourth quarter, while gross domestic product in Germany, Britain’s biggest trading partner, surged more than twice as fast as predicted.

The benchmark stocks gauge is up 0.3 per cent this week. The broader FTSE All-Share Index added 0.6 per cent.

NEW YORK

US stocks advanced modestly in early trading, as the S&P 500 scaled a new intraday record, helped by investor optimism regarding Greece and Ukraine and upbeat German growth data.

For the week, the Dow Jones was up 1.1 per cent, the S&P 500 was up 1.8 per cent and the Nasdaq 2.5 per cent.

The Dow Jones industrial average rose 40.52, or 0.23 per cent, to close 18,012.90, the S&P 500 gained 3.07 points, or 0.15 per cent, to 2,091.55 and the Nasdaq Composite added 18.47 points, or 0.38 per cent, to 4,876.08.

The S&P hit an intraday record of 2093.79, surpassing its prior record set on December 29th. – Additional reporting by Bloomberg and Reuters