By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Germany's DAX 30 index reclaimed the
10,000 level on Thursday as the broader European stock markets
moved firmly higher after U.S. Federal Reserve Chairwoman Janet
Yellen signaled she was in no hurry to raise interest rates.
The Stoxx Europe 600 index gained 0.7% to 348.68, after moving
in tight ranges for most of the week.
The DAX 30 index climbed back above the 10,000 mark for the
first time since June 11, higher by 0.8% at 10,010.68. The U.K.'s
FTSE 100 index advanced 0.7% to 6,824.92, while France's CAC 40
index climbed 0.9% to 4,570.48.
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 when 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
Wednesday after the comments.
Yellen's comments also weakened the dollar and boosted metals
prices. U.K.'s miners climbed with the stronger metals prices on
Thursday, with shares of Anglo American PLC up 1.6%, BHP Billiton
PLC (BHP) 1.4% higher and Rio Tinto PLC (RIO) rising 0.6%.
Among other notable movers, Rolls-Royce Holdings PLC climbed to
the top of the pan-European index. The engine maker rallied 7.7%
after it announced a 1 billion pound ($1.7 billion) stock-buyback
program and ruled out any major takeovers.
Man Group PLC jumped 6% after the asset manager said it is
buying Boston-based investment firm Numeric Holdings LLC for up to
$494 million.
Shares of Portugal Telecom SGPS SA picked up 1.1% after Moody's
Investors Service lifted the company's rating to Baa3, or
investment grade, from Ba2 to reflect "the company's stronger
global diversification and greater financial strength all owing to
its merger with Oi SA."
Among decliners, shares of Hennes & Mauritz AB (HNNMY)
slipped 0.6% after Deutsche Bank cut the Swedish fashion retailer
to hold from buy, with the analysts saying shares currently trade
at "full price."
Shares of Air France-KLM SA gave up 2.9% 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.
Euro-zone finance ministers gathered in Luxembourg for a
Eurogroup meeting, with Greece -- among other things -- on the
agenda. The International Monetary Fund -- one of Greece's
international lenders -- warned last week the country needs to
improve its public-sector efficiency dramatically, to meet new
fiscal targets and avoid fresh austerity measures. The IMF also
identified a EUR12.6 billion ($17 billion) gap in funding.
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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