By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets traded firmly
higher on Thursday, keying off solid gains in the U.S. after
Federal Reserve Chairwoman Janet Yellen signaled she was in no
hurry to raise interest rates.
The Stoxx Europe 600 index gained 0.7% to 348.46, after moving
in tight ranges for most of the week.
Germany's DAX 30 index climbed back above the 10,000 mark for
the first time since June 11, higher by 0.7% at 10,001.61. The
U.K.'s FTSE 100 index advanced 0.7% to 6,826.09, while France's CAC
40 index climbed 0.8% to 4,568.45.
The solid moves came after U.S. Fed chief Janet Yellen after the
European close on Wednesday said there would be "considerable time"
between when the bond taper ends and rate hikes begin. She also
said the central bank wasn't concerned with the stock market
currently trading around record highs.
All three major U.S. benchmarks closed in positive territory
after the comments.
Yellen's comments also weakened the dollar and boosted metals
levels. U.K.'s miners climbed with the stronger metals prices on
Thursday, with shares of Anglo American PLC up 2%, BHP Billiton PLC
(BHP) 2.1% higher and Rio Tinto PLC (RIO) rising 1.1%.
Among other notable movers, Rolls-Royce Holdings PLC climbed to
the top of the pan-European index. The engine maker rallied 6.1%
after it announced a 1 billion pound ($1.7 billion) stock-buyback
program and ruled out any major takeovers.
On a more downbeat note, shares of Hennes & Mauritz AB
(HNNMY) slipped 0.8% after Deutsche Bank cut the Swedish fashion
retailer to hold from buy, with the analysts saying shares
currently trade at "full price".
In the same vein, shares of Air France-KLM SA gave up 2% after
UBS slashed its rating on the airline to sell from neutral, arguing
that a number of factors that are beyond the company's control will
weigh on the results. UBS mentioned the recent spike in oil prices
due to sectarian violence in Iraq as one of the issues.
Outside financial news, Spain faced a tough match against Chile
in the soccer World Cup Wednesday. The defending champion lost 2-0
and was eliminated from the tournament after only two games. Read:
Watch this exuberant fan celebrate Spain's World Cup loss
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