European Stocks Rally Most in 11 Weeks on Yellen's CommentsBy
European stocks extended gains as Federal Reserve Chair Janet Yellen signaled that the U.S. central bank won’t rush to tighten monetary policy as inflation remains below target.
The Stoxx Europe 600 Index rose 1.5 percent at the close, the most since April. All 19 sectors advanced. The European benchmark yesterday fell to its lowest level since April after Donald Trump Jr. released emails suggesting Russia’s government backed his father’s presidential campaign.
- The best time of the year is now upon European stocks, if recent history is any indication. The Stoxx 600 has posted the best gains in July on average over the past five years, rising in four of them.
- In remarks prepared for her semi-annual testimony, Yellen said the U.S. economy should continue to expand over the next few years, allowing the Fed to keep raising interest rates, while also stressing that policy makers are monitoring too-low inflation.
- Among shares active on corporate news, Burberry Group Plc rose 3.2 percent after the company reported sales that beat estimates.
- Premier Oil Plc surged 35 percent after a consortium including the company discovered at least a billion barrels of crude in the Gulf of Mexico. Climbing oil prices also helped boost the overall energy sector.
— With assistance by Namitha Jagadeesh, and Elena Popina