LONDON (ShareCast) - Equity markets in Europe were buoyed Monday by dovish central bank rhetoric together with some cautious optimism surrounding Greece's ability to secure funding in the coming days.
Shares markets in Europe finished higher with the UK FTSE100 up 0.5%, the German DAX up by 1.8% and the French CAC-40 gaining 1%. Italy's FTSE MIB rose 1.1% and Spain's IBEX-35 added 1%.

The pan-European Stoxx 600 index advanced 1%. Financials and insurers rose sharply with the Stoxx 600 indices for both sectors up 1.6% and 1.3%, respectively.

A weaker european currency, down 0.8% against the US dollar, kicked-up exporting stocks in the Eurozone, particularly German car-makers, causing the Stoxx 600 autos and parts index to rally 2%.

Friday's remarks from Fed chair Janet Yellen over rate hikes being gradual and not sharp, together with China's central bank on Monday hinting at imminent support through policy easing, propelled global markets with Asia kicking off the upbeat tone.

That filtered into the European session followed by US markets which adding modest gains late afternoon in Europe. The Dow Jones Industrial Average was last seen up 1.5% while the S&P500 rose 1%.

Attention was also on Greece as lawmakers from the country presented a list of reforms on Friday in order to secure fresh funding from EU creditors.

Though a deal has not been announced, markets are hoping that Greece's creditors can avert a potential credit default by the country before it runs out of cash.

"We stress that Greece exiting the euro area is not our base case scenario. Nevertheless it is a tail risk for market participants," said UBS.

In commodities, gold prices fell 1.1% to $1184.6 per troy ounce while silver dropped 1.65% per ounce to trade at $16.64. In energy, Brent crude futures were off 0.9% at $55.57 per barrel while Nymex crude futures gained 0.5% at $48.33 per barrel.

In terms of economic data, the Germany's EU-harmonised inflation rate to rise 0.1% in March compared with a year earlier, as prices increased 0.5% month on month, according to the German Federal Statistics Office. Germany's rate of consumer price inflation reached a record low of -0.5% in January.

Italian borrowing costs sunk to a record low at auctions on Monday, as the country sold €2.5bn of bonds due in 2025, yielding 1.34%, two basis points below the rate received at an auction in February.

Before Italy's auction, the country's business confidence index jumped to 103.7 for March from a revised 100.5 the previous month, exceeding economists' expectations of a reading of 99.6.

Elsewhere, Spanish consumer prices slid 0.7% in March from a year earlier, ahead of market expectations for a 0.9% decline and an improvement from a 1.2% fall in February, according to data released on Monday.

In company news, French oil major Total has sold its stake in an onshore oilfield in Nigeria for $569m, the company confirmed on Monday.

Eurocement Holding, the second-largest shareholder in cement company Holcim, plans to vote against the Swiss company's union with Lafarge unless the financial terms of the deal are altered, according to press reporting citing a person familiar with situation.

Switzerland's Dufry announced over the weekend that it would take a 50.1% stake in its Italian rival World Duty Free for €1.3bn and plans to purchase the remaining 49.9% of shares through a mandatory offer

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