EUROPE MARKETS: European Stocks Step Higher, Led By RBS, Rolls-Royce

By Victor Reklaitis, MarketWatch

Furniture seller Steinhoff International also a big winner

European stocks scored modest gains Monday, led higher by jumps for Royal Bank of Scotland, Rolls-Royce and furniture seller Steinhoff International.

Investors were keeping an eye on a Monday meeting of eurozone finance ministers, who were expected to discuss a deadlock over debt-wracked Greece's bailout (http://www.marketwatch.com/story/greek-bailout-deal-is-within-sight-eus-moscovici-2017-02-16).

The Stoxx Europe 600 tacked on 0.3% to 371.18, building on last week's gain of 0.8%. The pan-European benchmark logged its highest close since December 2015 (http://www.marketwatch.com/story/european-stocks-stomp-toward-highest-close-since-2015-as-banks-rally-2017-02-15) during last week's action.

The euro was trading at $1.0622, up from $1.0608 late Friday.

Traders are braced for volatility for the shared currency as the finance ministers meet, said FXTM Chief Market Strategist Hussein Sayed in a note Monday. "Grexit" buzz might resurface if talks between Athens and its creditors look like they're becoming more complicated, he added.

Read: 6 ways Europe could trigger market turmoil in 2017 (http://www.marketwatch.com/story/6-ways-europe-could-trigger-market-turmoil-in-2017-2017-01-31)

Trading was expected to be somewhat subdued Monday, given U.S. markets are closed for Presidents Day (http://www.marketwatch.com/story/which-markets-will-be-closed-on-presidents-day-2017-02-16).

Movers: Shares in Royal Bank of Scotland Group PLC (RBS.LN) (RBS.LN) gained 6% following news the bank might not sell its Williams & Glyn business (http://www.marketwatch.com/story/rbs-may-forgo-williams-glyn-sale-2017-02-20). RBS had agreed to the sale during the financial crisis, but it has proved troublesome.

Rolls-Royce Holdings PLC (RR.LN) jumped 4% after Goldman Sachs analysts upgraded their rating for the engines maker to buy, as they put the stock on their "conviction" list.

Steinhoff International Holdings N.V. climbed 7% for the Stoxx 600's biggest gain, after the Netherlands-listed furniture retailer ended deal talks with South African supermarket operator Shoprite Holdings Ltd. (SHP.JO) .

On the downside, Unilever PLC (ULVR.LN) (ULVR.LN) (UNA.AE) fell more than 6% after American rival Kraft Heinz Co. (KHC) on Sunday dropped its $143 billion offer (http://www.marketwatch.com/story/kraft-heinz-withdraws-bid-for-unilever-2017-02-19) for the Anglo-Dutch consumer-goods giant.

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National indexes: The U.K.'s FTSE 100 index was roughly unchanged at 7,302.08.

France's CAC 40 index inched up 0.1% to 4,872.43, while Germany's DAX 30 tacked on 0.6% to 11,822.57.

(END) Dow Jones Newswires

February 20, 2017 05:24 ET (10:24 GMT)

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