News Column

European Stocks Follow Wall Street Higher On Fed Outlook

June 19, 2014

BRUSSELS (Alliance News) - European stocks rallied on Thursday, pushing into positive territory for the week, as dovish comments from the US Federal Reserve eased speculation about an imminent rate hike.

The Fed tapered its asset buying program by USD10 billion per month yesterday, but Fed Chair Janet Yellen said it would be "considerable time" between when the bond taper ends and when rate hikes begin.

Mining stocks were bolstered as the US dollar weakened on the news.

The Euro Stoxx 50 index of eurozone bluechip stocks rose 1.07%.

The German DAX rose 0.75%, the FTSE of the UK added 0.45%, and France's CAC 40 rose 0.72%. Switzerland's SMI inched up 0.20%.

Automakers Daimler, BMW and Volkswagen all gained in Frankfurt.

Rolls Royce jumped 8% in London after announcing a share buy back. Ashtead Group rose 4% and Barratt Development added 3.8%.

In Paris, EDF dropped more than 7%, after French Energy Minister Segolene Royal said a price increase would not be applied.

Air France-KLM lost 3.5%. UBS cut the stock to ''Sell'' from ''Neutral.''

UBS raised Ryanair to ''Buy'' from ''Neutral.'' The stock was moderately higher.

Hennes & Mauritz (H&M) shares slipped 0.5% after Deutsche Bank cut the Swedish fashion retailer to hold from buy.

The Swiss National Bank announced "significant progress" made by UBS and Credit Suisse at improving their capital positions. Still, shares of both banks were down more than 1%.

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Source: Alliance News

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