European stocks rose on Thursday, catching up with the rally on Wall Street after a key official laid out the conditions that would keep U.S. monetary policy loose for some time.
Federal Reserve Vice Chair Richard Clarida, who unlike Fed Chair Jerome Powell is a trained economist, said the central bank will keep buying bonds until “substantial further progress” has been made toward its maximum-employment and price-stability goals. Clarida said rates would be keep at its current near-zero levels until the Fed achieves “maximum” employment, until inflation has risen to 2%, and until inflation is on track to moderately exceed 2% for some time.
Clarida’s comment gave further heft to the Congressional testimony Powell has delivered, as the central bank chief said rising bond yields were a reflection of market confidence that the world’s largest economy would recover.
After a 0.5% gain on Wednesday, the Stoxx Europe 600
With a widening gap between short- and long-term yields, banks rose throughout Europe on hopes for improving margins, with Deutsche Bank
each rising 2%. Standard Chartered
was the exception in the sector, sliding 4% as the Asian-focused, U.K.-based bank reported weaker-than-forecast earnings as credit impairments more than doubled.
Diversified miner Anglo American
rose 5%, after reporting a smaller-than-forecast drop in underlying profit.
shares rose 6%. The Finnish telecom equipment maker is a popular company on the Reddit WallStreetBets message board, and Reddit favorites the videogames retailer GameStop
and movie-theater chain AMC Entertainment
surged on Wednesday.
shares fell 4%, as the brewer reported stronger-than-forecast sales and volumes for the fourth quarter but also said current-year margins would face pressure from adverse channel and packaging mix, coupled with transactional foreign exchange and commodity headwinds.