VIENNA (dpa-AFX) - The European markets climbed Wednesday after Eurozone finance ministers cleared the way for fresh loans for Greece. Strong consumer and business confidence figures out of Germany also added to the positive mood among investors today. The markets extended the strong gains of the previous session, which were sparked by recent polls which showed growing support for the U.K. to remain part of the European Union.
Greece's creditors agreed early Wednesday to release the next tranche of bailout funds and allowed debt relief after the International Monetary Fund relaxed its tough stance.
After the meeting in Brussels on Tuesday, Eurozone finance ministers welcomed the accord reached between Greece and the institutions that paved the way for the disbursement of EUR 10.3 billion bailout fund.
The decision to unlock the tranche of third bailout came after the Greek parliament approved unpopular austerity measures last Sunday.
The agreement contains a package of reforms to be implemented by Greece and an additional contingency mechanism. The latter will set additional reform measures in motion if the programme's agreed primary surplus target of 3.5 percent of GDP is at risk of being missed.
The Eurogroup also agreed on a set of measures to ensure the sustainability of Greece's public debt. Gross financing need should remain below 15 percent of GDP during the post programme period for the medium term and below 20 percent of GDP thereafter.
'We achieved a major breakthrough on Greece which enables us to enter a new phase in the Greek financial assistance programme,' Eurogroup President Jeroen Dijsselbloem said.
The Euro Stoxx 50 index of eurozone bluechip stocks increased 1.71 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 1.77 percent.
The DAX of Germany climbed 1.47 percent and the CAC 40 of France rose 1.13 percent. The FTSE 100 of the U.K. gained 0.70 percent and the SMI of Switzerland finished higher by 0.52 percent.
In Frankfurt, Deutsche Bank increased 3.60 percent and Commerzbank added 3.49 percent.
Utility E.ON advanced 3.73 percent and peer RWE gained 2.15 percent.
Daimler closed up by 3.34 percent and BMW rose 2.66 percent. Volkswagen also finished higher by 0.67 percent.
In Paris, Societe Generale climbed 5.90 percent and Credit Agricole rose 4.75 percent. BNP Paribas also finished up by 2.81 percent.
Peugeot gained 2.63 percent and Renault added 1.85 percent.
In London, Marks & Spencer sank 10.19 percent. The retailer warned its turnaround plans for its struggling clothing business will hit short-term profits.
SABMiller finished up by 0.08 percent, after European regulators approved AB InBev's acquisition of rival brewer.
Royal Mail gained 1.06 percent. The U.K.'s communications regulator delivered its verdict on Britain's postal market.
Royal Bank of Scotland increased 4.36 percent and Standard Chartered rose 3.47 percent. Barclays climbed 2.40 percent and HSBC added 2.80 percent. Lloyds Banking Group also closed up by 1.82 percent.
Novo Nordisk advanced 3.51 percent in Copenhagen after a U.S. advisory panel recommended approval of its new diabetes drug.
UniCredit gained 2.42 percent in Milan after its CEO, Federico Ghizzoni, will step down.
German business confidence strengthened more-than-expected to a 5-month high in May as companies were more satisfied with their current situation and turned noticeably optimistic regarding months ahead despite 'Brexit' fears, results of a key survey showed Wednesday.
The business climate indicator rose to 107.7 in May from a revised 106.7 in April, a monthly survey from the Ifo Institute showed. This was the highest reading since December 2015 and above the expected score of 106.8.
German consumer confidence is set to strengthen in June as the economy is expected to grow over coming months, survey data published by the research group GfK showed Wednesday. The forward-looking consumer sentiment index rose to 9.8 in June from 9.7 in May. It was forecast to remain unchanged in June.
Italy's industrial orders decreased for the first time in three months in March, figures from the statistical office Istat showed Wednesday. New orders fell a seasonally adjusted 3.3 percent month-over-month in March, reversing a 0.7 percent increase in February.
Spain's producer prices declined at the fastest pace in more than six years in April, the statistical office INE said Wednesday. Producer prices declined 6.1 percent year-on-year in April, after easing 5.6 percent in March. This was the biggest fall since July 2009, when prices slid 6.7 percent.
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