European Stocks Storm Higher As Ukraine Outlook Brightens

(RTTNews) - European stocks surged higher on Monday amid hopes for a peaceful resolution to the crisis in Ukraine.

Tensions eased over the weekend as representatives from Russia and Ukraine joined Germany and France for preliminary talks about a possible cease fire.

And although Bundesbank said in its monthly report that geopolitical tensions may weigh on Germany's economic outlook, markets were in a positive mood throughout the session.

The Euro Stoxx 50 index of blue chip stocks rose 1.41 percent.

Rebounding from Friday's losses, Germany's DAX was up 1.7 percent, France's CAC 40 added 1.35 percent and the U.K's FTSE 100 gained 0.78 percent.

Enthusiasm was tempered in the UK as Bank of England Governor Mark Carney told The Sunday Times in an interview that interest rates could be raised even before real wages turn positive.

In London, insurer Amlin PLC reported an 8 percent decline in pretax profit for the first half. Shares were flat.

United Internet acquired a 10.7 percent stake in Rocket Internet AG for 435 million euros.

Auto makers performed well around Europe, led by Renault and Volkswagen.

Tire company Continental rose 2.7 percent in Frankfurt.

Neste Oil Oyj fell 0.4 percent after the Finnish company said production at one of its refineries will be lower.

Aker Solutions ASA shares slipped 1.6 percent as the Norwegian company reportedly cut 225 jobs.

ARM Holdings was up 2.6 percent. The stock was raised to "Conviction Buy List" from "Buy" at Goldman Sachs.

Bovis Homes gained 4.5 percent. The company reported a surge in first-half profit.

Roche Holding AG is reported in talks to buy all remaining shares of Japan's Chugai Pharmaceutical for about $10 billion. Roche added 1.3 percent.

SGS added 1.3 percent. The company said it has been awarded laboratory status in China.

Logitech said it has been granted to extension until October 15 to file securities documents to Nasdaq. Shares slipped 0.4 percent.

In economic news from the eurozone, data released by Eurostat showed eurozone trade surplus to have increased unexpectedly in June, rising to EUR 16.8 billion, from EUR 15.4 billion in May. Economists had expected the trade surplus to decrease to EUR 15.1 billion.