European Markets Finished Mixed On Greek Uncertainty

(RTTNews) - The European markets ended Friday's session with mixed results. Investors were cautious as they await news from the meeting of Euro zone finance ministers, who have gathered to discuss the request made by Greece for a loan extension for up to six months.

Germany rejected Greece's request for extension of its loan agreement, saying the Greek government is attempting to receive a bridge financing, without meeting the requirements of the program.

"The letter does not meet the criteria agreed upon in the eurogroup on Monday," said a spokesman for German Finance Minister Wolfgang Schaeuble.

Traders largely remain optimistic that a deal will eventually be reached despite yesterday's developments. However, the longer the talks go on without a deal, the greater the concerns that Greece could exit from the eurozone, potentially destabilizing the currency bloc.

The Euro Stoxx 50 index of eurozone bluechip stocks increased by 0.04 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.26 percent.

The DAX of Germany climbed by 0.44 percent and the FTSE of the U.K. rose by 0.38 percent. The CAC 40 of France fell by 0.05 percent and the SMI of Switzerland finished lower by 0.09 percent.

In Frankfurt, Adidas increased by 1.40 percent. Deutsche Bank raised the stock to "Hold" from "Sell."

Commerzbank climbed by 1.40 percent and Deutsche Bank added 1.04 percent.

Deutsche Lufthansa sank by 4.25 percent and K+S fell by 1.16 percent.

In Paris, Gemalto dropped by 4.01 percent. A report released yesterday stated that a joint unit composed of operatives from the NSA and the British GCHQ hacked SIM card encryption keys engraved in Gemalto and possibly other SIM vendors' cards.

Alcatel-Lucent declined by 1.53 percent and Orange lost 1.04 percent.

In London, Standard Life climbed by 2.72 percent. The insurer reported higher profit for its fiscal 2014, along with a significant growth in Assets under administration. The company also announced a higher dividend.

Bovis Homes Group advanced by 3.38 percent and Taylor Wimpey added 0.62 percent, after JP Morgan named the stocks top picks. JP Morgan also upgraded its rating on shares of Bovis to "Overweight" from "Neutral."

Kingfisher dropped by 1.90 percent, after Barclays downgraded its rating on the stock to "Underweight" from "Equalweight."

Persimmon fell by 0.88 percent, after JP Morgan downgraded the stock to "Neutral" from "Overweight."

Telecom Italia, which reported preliminary full year results, fell by 1.07 percent in Milan.

The improvement in euro area consumer confidence to an 89-month high in February gives a real lift to Eurozone growth hopes, IHS Global Insight's Chief European Economist Howard Archer said.

The consumer confidence index rose by 1.8 points to -6.7 in February, flash survey from the European Commission showed Thursday. This was the highest score since September 2007. The final data is due on February 26.

Eurozone business activity accelerated for the third straight month to hit a seven-month high in February on stronger demand, raising hopes of recovery gaining strength, flash data from Markit Economics showed Friday. New order growth also prompted firms to raise their staffing levels at the fastest pace since 2011.

The composite output index rose to 53.5 in February from 52.6 in January. It was also above the expected score of 53.

Germany's private sector output grew at the strongest pace in seven months in February, flash data from Markit Economics showed Friday. The composite output index came in at 54.3 in February, up from 53.5 in January.

The French private sector expanded at the fastest rate in three-and-a-half years in February, flash data from Markit Economics showed Friday. The composite output index rose to 52.2 in February from 49.3 in January, more than the 49.8 reading expected by economists. This marked a forty-two month high.

Germany's producer prices in January declined at the fastest pace since early 2010, exceeding economists' prediction, figures from Destatis showed Friday. The prouder price index dropped 2.2 percent year-on-year in January, following a 1.7 percent fall in the previous month. Economists had forecast a 2.0 percent decline for the month.

The U.K. budget surplus hit a seven-year high in January on rising personal income tax, signaling that the government is set to achieve the target before the general election in May.

Meanwhile, retail sales declined slightly more-than-expected in January, marking the first fall in four months on weak food and clothing sales.

Net borrowing excluding public sector banks totaled -GBP 8.8 billion in January, an increase of 34.9 percent from last year, the Office for National Statistics said Friday. Nonetheless, the surplus was slightly below the GBP 9 billion predicted by economists.

Another report from the ONS showed that retail sales fell for the first time in four months in January. Sales including automotive fuel were down 0.3 percent from the previous month. Economists had forecast sales to drop 0.2 percent after a 0.2 percent rise in December.

British households perceived that the value of their home increased in February, but the corresponding index was at the lowest level in eighteen months, survey figures from Markit Economics and Knight Frank showed Friday.

The Knight Frank/Markit House Price Sentiment Index came in at 56.5 in February. In January, the index was at 58.2. This was the twenty third consecutive month of increase, though the latest score was lowest since August 2013.