By Sara Sjolin, MarketWatch

Heineken rises after earnings

European stocks pushed higher for a seventh straight session on Wednesday, with banks leading the gains after Federal Reserve Chairwoman Janet Yellen sparked a rally in financial stocks by hinting U.S. interest rates soon will go higher.

The Stoxx Europe 600 index climbed 0.4% to 371.80, setting it on track for its highest close since December 2015.

The positive trading mood in Europe follows a fourth straight record close for U.S. stocks (http://www.marketwatch.com/story/us-stock-rally-takes-a-breather-as-investors-wait-to-hear-from-feds-yellen-2017-02-14) on Tuesday. That move higher came after Fed chief Yellen struck a hawkish tone and said rates could rise sooner rather than later (http://blogs.marketwatch.com/capitolreport/2017/02/14/feds-yellen-testifies-to-senate-live-blog-and-video/).

"Another day, another record high for U.S. markets, with global markets playing catchup and investors wondering how much higher these markets can reach," said Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor, in a note.

"Buoyed by Janet Yellen's faith in the U.S. economy, financial stocks led the way, outperforming the wider market and this has continued in Europe, with banks up strongly," she added.

On Wednesday, Yellen will speak again, when she gives her semiannual testimony before the House Finance Services Committee at 10 a.m. Eastern Time, or 3 p.m. London time.

Bank cheer: Banks tend to benefit from rising interest rates as it means they can charge customers more for their loans. Even if yields are still extremely low in Europe, the continent's banks are likely to get a boost from tighter policy in the U.S., as most of them also do business overseas.

Shares of Deutsche Bank AG (DBK.XE) (DBK.XE) rose 3.1%, BBVA SA (BBVA) (BBVA) added 2.9%, BNP Paribas SA (BNP.FR) gained 2.1%, and UBS Group AG (UBS) climbed 1.8%.

Credit Agricole SA (ACA.FR) put on 4.4% after the French lender reported a drop in fourth-quarter profit due to a writedown (http://www.marketwatch.com/story/credit-agricole-profit-plunges-67-on-a-write-down-2017-02-15), but said revenue rose 7%.

ABN AMRO Group NV (ABN.AE) gained 2.6%. The Dutch bank reported a 23% rise in fourth-quarter profit (http://www.marketwatch.com/story/abn-amro-profit-rises-capitol-position-stronger-2017-02-15) and said its capital position has strengthened.

Other movers: Shares of Heineken NV (HEIA.AE) (HEIA.AE) jumped 4.5% after the brewer said earnings rose in 2016 (http://www.marketwatch.com/story/heineken-profit-rises-despite-currency-headwinds-2017-02-15) despite continued currency headwinds.

On a more downbeat note, Akzo Nobel NV (AKZOY) (AKZOY) slid 3.5% after the Dutch maker of Dulux paint and the building material Polyfilla reported a drop in 2016 profit (http://www.marketwatch.com/story/akzo-nobel-profit-falls-but-sticks-to-guidance-2017-02-15).

Air Liquide SA (AI.FR) lost 1.3% after the industrial-gas manufacturer posted full-year revenue below analysts' expectations (http://www.marketwatch.com/story/air-liquide-expects-higher-profit-in-2017-2017-02-15).

Economic news: The U.K. unemployment rate stayed at 4.8% in the three months to December, remaining at its lowest level since 2005.

Meanwhile, U.K. wage growth slowed to 2.6% from 2.7% (http://www.marketwatch.com/story/uk-wage-growth-unexpectedly-slows-2017-02-15). With consumer prices rising 1.8% in January compared with 1.6% in December, the data show inflation is now beginning to eat into wage growth, a sign that British consumers may rein in their spending.

The pound dropped to $1.2428 after the report, down from $1.2467 late Tuesday in New York.

In other economic news, the Swedish Riksbank kept its main interest rate on hold (http://www.marketwatch.com/story/swedens-riksbank-keeps-main-interest-rate-on-hold-2017-02-15) at a record low of minus 0.5%.

(END) Dow Jones Newswires

February 15, 2017 05:16 ET (10:16 GMT)