Saturday 14 December 2019

Yellen and Euro sentiment boost markets

US Federal Reserve Chair Janet Yellen
US Federal Reserve Chair Janet Yellen

Colm Kelpie

European shares rose the most in two weeks as Federal Reserve Chair Janet Yellen reiterated her faith in US growth, while indicating that interest rates won't be prematurely raised.

Signs of economic progress in Europe also helped gains.

By the close in Dublin, the ISEQ Overall Index was up 1.13pc, or 72.51 points, to end the trading session at 6475.06.

The leaders on the Dublin market included building materials group CRH, which increased 2.8pc to €27.05, while fruit company Fyffes rose 1.9pc to €1.60.

The laggards included insurance group FBD, which slipped 0.5pc to €6.50, while speciality baker Aryzta fell 0.4pc to €36.40.

The Stoxx Europe 600 Index climbed 1.1pc to 346.26 at the close of trading.

Germany's DAX Index was among the best performers of western European markets after data showing a rebound in industrial production in April indicated the region's largest economy is benefiting from a pick-up in investment.

The Eurozone economy grew faster than previously estimated at the start of the year, according to a separate report from the EU's statistics office.

"Investors know that June is out of the equation with respect to a US rate hike on the back of Janet Yellen's speech," said Naeem Aslam, a market analyst at TF Global Markets UK.

"Economic conditions are improving in the Eurozone. German industry output data has also improved the sentiment."

On Monday Ms Yellen repeated her belief the US economy still has forward momentum and that consumers could provide a significant step up in spending this quarter to propel growth. She was silent on the timing of the next rate rise.

Additional reporting by Bloomberg

Irish Independent

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