Europe close: Stocks higher despite Greek debt worries

European stocks rose on Thursday following positive earnings from French bank Société Générale and oil firm Total, together with supportive comments from the US president, despite concerns about the Greek debt crisis lingered.

The benchmark Stoxx Europe 600 index was up 0.78% to 366.79, Germany’s DAX rose 0.86% to 11,642.86 and France’s CAC 40 added 1.25% to 4,826.24.

Meanwhile, West Texas Intermediate was up 1.1% to $52.92 a barrel and Brent crude was 0.78% firmer at $55.53, having suffered heavy losses in the previous session.

Giving investor sentiment a boost, speaking in the afternoon Donald Trump said: "We're going to be announcing something over the next I would say two or three weeks that will be phenomenal in terms of tax."

Michael Hewson, chief market analyst at CMC Markets, said there were also concerns about a re-escalation of the Greek debt crisis.

“Germany’s finance minister Wolfgang Schäuble has again adopted a tough line on Greece, saying that the country would need to leave the eurozone if they were to get a cut in debt. Furthermore, Schäuble has pursued the same line as the International Monetary Fund to be ‘ruthless truth tellers’ when he made comments that the real issue with Greece is not their debt, but in fact their competitiveness in a global marketplace.

“While one could argue that this sort of rhetoric is not particularly constructive when it comes to sorting out a solution to what has been a long running issue, it does also open a potential option for Greece if the current impasse continues. Definitely a case of be careful of what you wish for.”

By the close of trade the yield on the benchmark two-year Greek government bond was up by 21 basis points to 10.24%.

In corporate news, Société Générale was up 2.74% after it posted a smaller-than-expected drop in fourth-quarter net profit and that its operating income more than doubled underscoring positive sentiment over Europe's banking sector.

French oil giant Total gushed 1.27% higher as it reported a better-than-expected profit for the fourth quarter, thanks in part to a rebound in crude prices.

Mediobanca edged 1.61% higher after the Italian lender said net profit in its fiscal second quarter almost doubled thanks to a jump in revenue in all business streams.

Fund manager Ashmore surged 5.71% after it said pre-tax profit in the six months to the end of December rose 94% to £121.5m, while net revenue increased 24% to £144.1m.

On the downside, Commerzbank was 2.22% weaker despite reporting better-than-expected fourth-quarter earnings, while Publicis slumped 3.65% after its fourth-quarter sales missed estimates.

Medical devices group Smith & Nephew were off 0.50% as it reported full year sales in line with forecasts and earnings that beat consensus despite declining sales in the fourth quarter.

Thomas Cook sank 7.71% as it reported a narrowing of losses for the first quarter but sounded a cautious note on the outlook.

On the data front, Germany’s trade surplus hit a record high in 2016. It rose to €252.9bn, well above the previous high of €244.3bn in 2015.

While in December, the trade balance decreased to €18.4bn from €21.8bn a month earlier after a 3.3% fall in exports and as imports remained flat.