European Markets Finished Mostly Higher Ahead Of Greek Vote

(RTTNews) - The majority of the European markets ended Wednesday's session with modest gains. The Greek parliament is set to vote on the deal agreed by Eurozone leaders today, in exchange for a new bailout. The deal needs to be approved by the other 18 national parliaments of the euro area before starting fresh negotiations.

Eurozone finance ministers will hold a conference call on Wednesday to discuss the Greece situation.

The International Monetary Fund said Greece's debt can now only be made sustainable through debt relief measures that go far beyond what Europe has been willing to consider so far.

In a report released Tuesday, the IMF said the closure of banks and imposition of capital controls exacted a "heavy toll" on the banking system and the economy. Consequently, it further deteriorated debt sustainability.

The financing need through end-2018 is now estimated at EUR 85 billion and debt is expected to peak at close to 200 percent of GDP in the next two years, provided that there is an early agreement on a program. This amount was around EUR 25 billion more than what was projected by the IMF two weeks ago.

Federal Reserve Chairman Janet Yellen gave a relatively upbeat assessment of the U.S economy Wednesday morning in semiannual testimony before Congress. With the economy expected to pick up in the coming months, Yellen thinks the Fed will raise interest rates by the end of the year.

The Euro Stoxx 50 index of eurozone bluechip stocks increased by 0.46 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.44 percent.

The DAX of Germany climbed by 0.20 percent and the CAC 40 of France rose by 0.29 percent. The FTSE of the U.K. gained 0.00 percent and the SMI of Switzerland finished higher by 0.09 percent.

In Frankfurt, Volkswagen decreased by 1.44 percent and BMW fell by 1.18 percent. Daimler declined by 0.05 percent and tire maker Continental dropped by 1.93 percent.

Commerzbank climbed by 1.24 percent and Deutsche Bank added 0.99 percent.

In Paris, Lafarge increased by 2.46 percent, following the debut of LafargeHolcim.

EDF surged by 2.66 percent and Airbus Group gained 1.29 percent.

In London, BHP Billiton finished lower by 0.20 percent. BHP has said it expects to write down the value of its onshore U.S. assets by about $2 billion post-tax in its financial results for fiscal 2015.

Anglo American rose by 0.56 percent, after Credit Suisse upgraded its rating on the stock to "Outperform" from "Neutral."

Travis Perkins gained 2.77 percent, after Berenberg upgraded it to "Buy" from "Hold."

Burberry, which issued a first-quarter trading update, fell by 2.59 percent.

Vodafone decreased by 0.92 percent, after Goldman Sachs downgraded it to "Neutral" from "Buy."

Aker Solutions, which reported lower second-quarter profit, declined by 4.85 percent in Oslo.

Fiat Chrysler gained 3.03 percent in Milan, after positive comments from Credit Suisse.

ASML climbed by 4.31 percent in Amsterdam. The chipmaker sees improved earnings in the third quarter.

French consumer price inflation held steady in June, in line with consensus estimate, figures from the statistical office Insee showed Wednesday. The consumer price index rose 0.3 percent year-over-year in June, the same rate of increase as in May. The figures was also matched with economists' expectations. It was the third successive monthly rise.

U.K. jobless claims increased unexpectedly in June, data from the Office for National Statistics revealed Wednesday. The number of people claiming jobseeker's allowance increased by 7,000 in June from May, confounding expectations for a decline of 9,000. This was the first increase since October 2012.

At the same time, the claimant count rate held steady at 2.3 percent in June as expected by economists.

U.K. unemployment increased and employment declined in the three months to May, data from the Office for National Statistics revealed Wednesday. At the same time, wages grew at the fastest pace in more than five years.

During the March to May period, the jobless rate calculated based on the ILO standards came in at 5.6 percent. The rate was forecast to be at 5.5 percent, the same as logged in the three months to April, which was also the lowest since April-June 2008.

However, the jobless rate was well below the 6.5 percent seen a year earlier, the statistical office said.

China's second quarter economic growth exceeded expectations, helped by stimulus, suggesting that the government remains on track to achieve its target this year. Gross domestic product grew 7 percent year-over-year in the second quarter, the same rate of growth as seen in the first quarter, the National Bureau of Statistics reported Wednesday. The rate was faster than the 6.8 percent rise forecast by economists.

With energy prices showing another significant increase, the Labor Department released a report on Wednesday showing that U.S. producer prices rose by slightly more than expected in the month of June. The Labor Department said its producer price index rose by 0.4 percent in June following a 0.5 percent increase in May. Economists had expected prices to climb by 0.3 percent.

Industrial production in the U.S. rose by slightly more than expected in the month of June, the Federal Reserve revealed in a report on Wednesday, with the increase reflecting jumps in mining and utilities output. The Fed said industrial production increased by 0.3 percent in June after edging down by 0.2 percent in May. Economists had expected production to rise by 0.2 percent.

Business conditions for New York manufacturers have improved slightly in the month of July, according to a report released by the Federal Reserve Bank of New York on Wednesday.

The report said the general business conditions index climbed to a positive 3.9 in July from a negative 2.0 in June, with a positive reading indicating growth in regional manufacturing activity. The index was expected to rise to a positive 3.0.