Europe midday: Equity markets pour on gains thanks to dovish central banks

European stock markets poured on modest gains on Monday as market participants demonstrated bullish hopes on the back of dovish central bank rhetoric and optimism over a Greek funding deal in Brussels.

Midday in London, the FTSE 100 gained 0.6% while the DAX in Frankfurt added 1.5% and the CAC-40 in Paris put on 1.2%. The IBEX-35 in Madrid was up 0.9% and the FTSE MIB in Milan gained 1%. The broader Stoxx 600 index tacked on 1.2%.

Friday’s remarks from Fed chair Janet Yellen over rate hikes being gradual and not sharp, together with China's central bank on Monday hinting at imminent support through policy easing propelled Asian share markets higher overnight.

That supported European indices in Monday’s session with riskier sectors like banks and insurers adding healthy gains. The Stoxx 600 banks index was up 1.4% while the corresponding index for insurers rose 1%.

The euro fell 0.6% against the US dollar to change hands at $1.08356, further supporting equity markets, particularly exporters' stocks, which benefit from a weaker euro currency.

Attention was also on Greece as lawmakers from the country presented a list of reforms on Friday in order to secure fresh funding from EU creditors.

Though a deal has not been announced, markets are hoping that Greece’s creditors can avert a potential credit default by the country before it runs out of cash.

In terms of economic data, the Germany's EU-harmonised inflation rate to rise 0.1% in March compared with a year earlier, as prices increased 0.5% month on month, according to the German Federal Statistics Office. Germany's rate of consumer price inflation reached a record low of -0.5% in January.

Italian borrowing costs sunk to a record low at auctions on Monday, as the country sold €2.5bn of bonds due in 2025, yielding 1.34%, 2 basis points below the rate received at an auction in February.

Before Italy’s auction, the country’s business confidence index jumped to 103.7 for March from a revised 100.5 the previous month, exceeding economists' expectations of a reading of 99.6.

Elsewhere, Spanish consumer prices slid 0.7% in March from a year earlier, ahead of market expectations for a 0.9% decline and an improvement from a 1.2% fall in February, according to data released on Monday.

In company news, French oil major Total has sold its stake in an onshore oilfield in Nigeria for $569m, the company confirmed on Monday.

Eurocement Holding, the second-largest shareholder in cement company Holcim, plans to vote against the Swiss company’s union with Lafarge unless the financial terms of the deal are altered, according to press reporting citing a person familiar with situation.

Switzerland's Dufry announced over the weekend that it would take a 50.1% stake in its Italian rival World Duty Free for €1.3bn and plans to purchase the remaining 49.9% of shares through a mandatory offer.