LONDON (ShareCast) - -Eurozone ministers gather to discuss Greek bailout.
-China eases bank capital requirements.
-Stocks rise, now at 6 month highs.

FTSE-100: 0.76%
Dax-30: 1.38%
Euro Stoxx 50:1.13%
SMI: 0.18%
Ibex 35: 1.77%

Fair winds drove European stock markets higher on Monday as equities across the region recorded six month highs.

A meeting of Eurozone finance ministers began in Brussels at 3:30pm local time which is expected to produce a raft of measures aimed at solving the Greek debt crisis.

The country is likely to receive a €130bn bailout, the European Central Bank may also forgo interest payments from the Greek bonds it has acquired during the past two years.

Other Eurozone central banks may also offer assistance to Greece, by channeling to Athens their share of the European Central Bank´s profits on its own holdings of Greek debt.

In addition to public sector involvement, private bond holders are anticipated to have agreed a 70% cut in the money they are owed by Greece.

The objective is to enable Greece to reduce its debt to GDP ratio to 120% by 2020, a level the International Monetary Fund has defined as “sustainable”.

Giving further succour to investors has been the news that the People’s Bank of China has relaxed the rules on capital requirements for Chinese banks, thereby releasing liquidity into the Chinese economy and, by extension, the global economic system.

EQUITIES

The Dutch delivery firm TNT rose a huge 60.5% through Monday after rejecting a take-over bid made by US peer UPS

Danish drinks conglomerate Carlsberg rose 5.85% despite reporting a 4.2% drop in 2011 profits on weaker sales in Russia.

Shares in Veolia Environnement dropped 3% after Les Echos reported the company’s directors are seeking to replace Chief Executive Officer Antoine Frerot.

The strongest sector on the Stoxx Europe 600 was construction and materials which gained 1.84%. The weakest sector was health care which fell 0.4%

MACROECONOMY

INSEE´s French business confidence index remained flat during the month of February, at 92 points.

Italian industrial orders grew by 3.4% month-on-month in December.

OTHER MARKETS

Front month Brent crude futures had risen by 0.49% by 4.41pm in London to $120.16 per barrel as concerns grew over tension with Iran interrupting oil supplies.

The Euro/dollar had gained 0.82% by 6pm in Frankfurt to hit $1.3248.

BS

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