Europe midday: Stocks rise on car sales data, Greece optimism

European stocks were modestly higher at the end of the week on the back of improved European car sales data and on the heels of progress overnight on debt relief for Greece.

As of 1145 BST the benchmark Stoxx 600 is higher by 0.57% or 2.22 points to 388.27, alongside a rise of 0.32% for the German Dax to 12,732.86 and a gain of 0.75% in the Cac-40 to 5,255.92.

In parallel, euro-dollar was edging higher by 0.11% to 1.2769 while front month Brent crude oil futures 0.56% at $44.71 per barrel on the ICE.

European car sales bounced back in May, rising by 7.7% to 1.43m vehicles according to ACEA, following a drop of 6.8% in April.

Acting as a backdrop, the Athens Stock Exchange's general index was up by 1.33% at 810.34 and near a two-year high. Meanwhile, the yield on the country's two-year debt was down by 20 basis points at 4.78%.

Overnight, euro area finance ministers completed the second programme review for Greece, agreeing to dispense a new tranche of €8.5bn in new loans for the stricken Mediterranean country, which would allow it to meet large bond repayments falling due in June.

They also agreed on a medium-term debt strategy for further debt relief, committing to increase relief should the country's economic expansion falter.

The International Monetary Fund also announced it would approve in principle a new stand-by credit line for Greece.

Commenting on Thursday night's developments, Antonio Garcia Pascual at Barclays Research said: "the next event for Greece will be the IMF board meeting on Greece (date not announced yet). Overall, we take today's outcome as good news for investors, as the IMF involvement and the enhanced debt relief commitments increase the chances of a better macroeconomic outcome for Greece in the longer term."

In other economic news, Eurostat confirmed that the rate of increase in euro area consumer prices dropped from a 1.9% year-on-year clip in April to 1.4% for May.

At the core level, CPI ran at a 0.9% year-on-year clip in May, which was also in-line with the preliminary estimate.

Still on the calendar for Friday were US housing starts figures for the month of May at 1430 BST and the University of Michigan's consumer confidence survey for the month of June at 1500 BST.

French lender Societe Generale priced shares of its car leasing arm at the lower end of its target range ahead of its initial public offering, raising €1.2bn.