EUROPE MARKETS: European Stocks Higher As Greece Lands Loan-extension Approval

By Carla Mozee, MarketWatch

LONDON (MarketWatch) -- European stocks edged higher Tuesday, after hitting a seven-year high in the previous session, as European officials approved an extension of Greece's bailout.

After reviewing Greece's list of economic reform proposals, eurozone finance ministers approved the country's request to extend its 240-billion-euro ($273 billion) bailout, two European officials told The Wall Street Journal (http://www.marketwatch.com/story/eurozone-finance-ministers-approve-greek-bailout-extension-2015-02-24). The list of proposals was required Greece wanted to stretch its funding beyond the Feb. 28 expiration date to June.

The European Commission on Tuesday supported the proposals (http://www.marketwatch.com/story/european-commission-backs-greek-bailout-reform-plans-2015-02-24), as did the International Monetary Fund, although IMF Managing Director said in a letter (http://www.marketwatch.com/story/imf-backs-greeces-reform-proposals-with-reservations-2015-02-24-9915712) to the leader of the eurozone finance ministers the reform list generally "is not very specific."

The deal will now go to national European parliaments for a vote and ,"barring any surprises, should be done by the end of the week. So this chapter of the crisis could draw to an end," said Sue Trinh, senior currency strategist at RBC Capital Markets, in an early Tuesday note.

But she cautioned that "[n]othing is resolved, and things could flare up again by late April," when international lenders will review more detailed proposals from Greece. "But for now it feels as if we are close to a ceasefire."

Stocks: Greece's Athex Composite surged 8.9% to 930.49, moving toward its highest close since December, and outperforming the broader European equity market. Trading was closed Monday for a holiday. Beleaguered bank stocks were among the best performers on Tuesday, with National Bank of Greece SA surging 18%, Alpha Bank AE up 14% and Piraeus Bank SA higher by 14%. Read more about Greek markets. (http://www.marketwatch.com/story/greek-stocks-bonds-rally-on-bailout-deal-optimism-2015-02-24)

The Stoxx Europe 600 tacked on 0.2% at 385.80, after darting between small gains and losses throughout the session. The benchmark on Monday (http://www.marketwatch.com/story/european-stocks-higher-as-greek-bailout-extended-2015-02-23) closed at its best level since November 2007, after Greece on Friday reached the bailout-extension agreement.

Germany's DAX 30 fell 1 point to 11,130.63, edging back from Monday's close at a record high. The record high was the 15th of the year, according to FactSet.

France's CAC 40 shed 0.1% to 4,857.66, while the U.K.'s FTSE 100 picked up 0.1% at 6,923.65. In London, shares of BHP Billiton PLC (BHP) rose 2.9% after drop in the mining heavyweight's first-half profit (http://www.marketwatch.com/story/bhp-profit-falls-as-commodity-prices-slide-2015-02-24) was less than analysts had anticipated.

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