EU stocks gain on Yellen’s speech
On Tuesday, EU shares rallied, heading for a second straight revenue. It’s because market participants reacted to Janet Yellen’s comments on American interest rate lifts.
The Stoxx Europe 600 acquired 0.9%, trading at 345.54, with all sectors reporting revenues. As for the leaders, these were basic materials, energy as well as financial stocks. On Monday, the index soared 0.3%, led by a ascend among mining stocks.
The region’s stocks were grasping their cue from Wall Street. Indeed, American shares rallied after Yellen’s speech on Monday. Friday’s much weaker-than-expected May jobs report had lessened hopes for an interest rate lift in June or July and traders were awaiting more clues on the rate path.
Yellen’s dovish comments pushed the S&P 500 right to the best close of 2016. Considering the poor data set, Janet Yellen is probably giving a clear indication to the financial markets that with Brexit concerns as well as the fresh poor data, a rate lift seems to be unreal in June.