European shares rise amid global relief after Powell comments

European shares rose on Wednesday, taking cues from overnight gains on Wall Street after U.S. Federal Reserve Chair Jerome Powell sounded less hawkish than expected in a Congressional testimony. The pan-European STOXX 600 index rose 0.5% as of 0813 GMT, tracking global stocks, as Powell said the U.S. economy was ready for the start of tighter monetary policy but it may take several months to make a decision on running down the Fed's $9 trillion balance sheet.


Reuters | Updated: 12-01-2022 14:19 IST | Created: 12-01-2022 13:53 IST
European shares rise amid global relief after Powell comments
Representative Image Image Credit: Pixabay

European shares rose on Wednesday, taking cues from overnight gains on Wall Street after U.S. Federal Reserve Chair Jerome Powell sounded less hawkish than expected in a Congressional testimony.

The pan-European STOXX 600 index rose 0.5% as of 0813 GMT, tracking global stocks, as Powell said the U.S. economy was ready for the start of tighter monetary policy but it may take several months to make a decision on running down the Fed's $9 trillion balance sheet. Miners led gains, advancing 2% after factory gate inflation data showed more room for policy easing in China, while tech stocks rose for the second straight session.

Dutch firm Philips plunged 11.1% after saying it expects fourth-quarter core profit to drop around 40%, hit by a global shortage of parts and a recall of ventilators. French cloud computing company OVHcloud climbed 4.2% following a 13.9% rise in first-quarter revenue and said it was on track to achieve its full-year objectives.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Give Feedback