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Markets

European stock markets rise at open

Published June 7, 2016 Updated June 7, 2016 07:56am

imageLONDON: European stock markets rose at the start of trading on Tuesday, mirroring gains elsewhere after Federal Reserve Chair Janet Yellen expressed confidence in the US economy despite poor jobs data.

London's benchmark FTSE 100 index climbed 0.4 percent to 6,297.27 points compared with Monday's close.

In the eurozone, Frankfurt's DAX 30 won 0.7 percent to 10,196.17 points and the CAC 40 in Paris gained 0.5 percent to 4,443.41.

"European stocks are trading higher, receiving a boost from firmer markets across Asia on the back of a speech by Fed chief Janet Yellen yesterday," said Markus Huber, a trader at City of London Markets.

"While Yellen indirectly confirmed that there won't be a rate hike in June, she also sounded confident that the US economy remains strong despite a disappointing US non-farm payrolls report last Friday," he added in a client note.

Yellen's comments boosted also Wall Street on Monday, with the S&P 500 stocks index reaching a seven-month high following a 0.5-percent gain.

She helped markets tentatively put last Friday's surprisingly dismal US jobs report behind them, saying one month's data is not so significant and that the overall jobs market situation has been "quite positive".

But she backed away from previous Fed hints for a rate increase in June or July, only saying that tighter monetary policy should come gradually.

Copyright AFP (Agence France-Presse), 2016

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