Europe Stocks Touch Seven-Year High

        European stock markets were on course to end a volatile week at seven-year highs, helped by signs of a modest improvement in the eurozone economy and hopes that Greece can reach a deal with its creditors.
        The Stoxx Europe 600 was 0.6% higher in early trading, touching its highest level since late 2007. Germany's DAX index rose 0.7% to an all-time high just above 11,000. The latest gain came after data on Friday showed the German economy grew faster than expected in the final quarter of 2014. Although growth slowed in France, economists said the data pointed to better-than-expected expansion for the euro area as a whole. Data for the currency bloc are due at 1000 GMT.
        "We expect the positive underlying momentum in the economies to continue. Lower oil prices mean higher purchasing power for consumers and the lower euro will improve sentiment and gradually start to make its way through to growth too," said Evelyn Herrmann, European economist at BNP Paribas.
        Stock markets were extending a rally that began on Thursday after a cease-fire deal to halt the conflict in Eastern Ukraine was signed. Sentiment further improved as leaders from Greece and the rest of the eurozone struck a more conciliatory tone, despite failing to seal a deal on Wednesday night on future financial aid to the crisis-hit country.
        Hopes of a compromise over Greece's bailout also boosted the euro, which extended gains on Friday. The common currency was 0.2% higher against the dollar at $1.1430.
        There was further relief for Greek assets. Athens stocks were 6.6% higher in early trade.
        Banking stocks led after the European Central Bank boosted the amount of emergency lending it provides to Greek banks by EUR5 billion ($5.7 billion), according to German press reports. The reported move follows a spate of withdrawals from Greek banks that have increased their reliance on ECB funding.
        The news pushed Greek government bonds sharply higher, with the 10-year yield falling nearly a percentage point to 9.26%. Yields fall as prices rise.
        Spanish, Italian and Portuguese debt also gained.
        Write to Tommy Stubbington at tommy.stubbington@wsj.com
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        (END) Dow Jones Newswires

        February 13, 2015 04:20 ET (09:20 GMT)

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