European stocks climbed on Tuesday on hopes for a Greek debt deal after Greek Finance Minister Yanis Varoufakis expressed optimism that a deal between Greece and Europe regarding the country's bailout program will soon be reached.
The economist-turned-finance minister ruled out accepting more bailout cash while hinting that he had a solution to end the confrontation with international creditors.
The Euro Stoxx 50 index of eurozone bluechip stocks is climbing 1.4 percent and the Stoxx Europe 50 index is up 1.2 percent, while the German DAX, France's CAC 40 and the U.K.'s FTSE 100 are rising over a percent each. Greece's Athex Composite Share Price Index is rallying 8 percent.
Lenders are gaining ground, with BNP Paribas, Deutsche Bank, Commerzbank and Barclays climbing 2-4 percent.
Banco Santander is gaining nearly 3 percent in Madrid after the Spanish lender reported a healthy rise in 2014 profit, aided by a decline in provisions for bad loans.
Tom Tailor Holding shares are up nearly 10 percent in Frankfurt. The fashion group returned to a profit in 2014 for the first time since acquiring the Bonita brand in 2012.
Energy stocks are gaining ground, with BP Plc shares rallying 2.5 percent as the oil giant reported a $4.4-billion loss for the fourth quarter of 2014 and unveiled plans to cut capital expenditure due to the lower oil price. The company maintained its quarterly dividend at 10 cents per ordinary share.
Alfa Laval AB is rising 1.8 percent in Stockholm. The Swedish engineering group reported fourth-quarter net income of 911 million Swedish kronor, up from 871 million kronor last year.
Areva is losing 1.2 percent in Paris after the French nuclear group warned of a significant increase in provision and write-downs in its 2014 accounts.
In economic releases, activity in U.K's construction sector quickened unexpectedly in January after a protracted slowdown in output growth at the end of 2014, a private survey showed. The Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index rose to 59.1 from a seventeen month low of 57.6 in December. Economists had expected the gauge to slip to 57.
Meanwhile, Eurozone producer prices fell at the fastest pace in five years during December, figures from Eurostat showed, reigniting fears of deflation. Producer prices fell an annual 2.7 percent, faster than the 1.6 percent decline in the previous month. Economists had forecast a 2.5 percent fall.
Elsewhere, the Asian markets ended mixed even as a sharp rebound in oil prices and hopes for the Greek debt deal spurred some bargain hunting in commodity-related stocks.
U.S. stock index futures point to a slightly higher open after sharp gains yesterday.
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