European stocks edged to a fresh seven-year high in quiet trade
Thursday, with investors showing little reaction to a second day of
testimony from U.S. Federal Reserve Chairwoman Janet Yellen.
The Stoxx Europe 600 index was 0.2% higher in early trade,
having inched lower in Wednesday's session.
A calmer tone has returned to markets since a deal was struck to
extend Greece's international bailout, ending weeks of negotiations
that sparked volatility.
"Greece will probably slip off the radar for a while, with the
next key events coming in April and early May," said analysts at
Barclays.
On Wednesday, U.S. stocks inched to a record high as traders
scanned Ms. Yellen's congressional testimony for any clues about
the timing or pace of interest rate increases. The Fed chair
offered few new hints, but reiterated the message that rate
increases are likely later this year as the U.S. economy
improves.
A rate hike in June remains likely, said Barclays.
Ms. Yellen's testimony offered little fresh impetus for currency
markets. The euro and the pound were both steady against the dollar
at $1.1361 and $1.5523 respectively.
In Europe, investors are preparing for the start of the European
Central Bank's bond buying program next month, which is widely
expected to drive stocks and bonds higher. Bond yields across
Europe, which fall as prices rise, have already been dragged to
record lows. German yields are now negative up to maturities of
seven years, while German 10-year debt yields just 0.3%.
In commodity markets, Brent crude oil was down 0.2% at $61.52 a
barrel, and gold was up 0.9% at $1,212.00 an ounce.
Write to Tommy Stubbington at tommy.stubbington@wsj.com
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