European Shares Rise After Powell Testimony

stockmarkets jan17 12jan22 lt

European stocks advanced on Wednesday after U.S. Federal Reserve Chair Jerome Powell sounded less hawkish than expected in a Congressional testimony.

Powell indicated that interest rates are likely to rise this year, but monetary policy will take a broad and forward-looking view, keeping pace with an ever-evolving economy.

Investors also digested weaker-than-expected Chinese inflation data and looked ahead to the release of U.S. December inflation data later in the day for further clues on the rate outlook.

The pan European Stoxx 600 rose 0.4 percent to 485.13 after climbing 0.8 percent on Tuesday.

Commodity-related stocks surged after China's consumer and factory-gate inflation growth both eased last month, giving policymakers scope to cut interest rates.

Miners Anglo American, Antofagasta and Glenore all rose about 3 percent.

Oil & gas firm BP Plc rose 2.4 percent and Royal Dutch Shell added 2.3 percent.

Recruiter PageGroup rose about 1 percent after lifting its annual profit view.

Grafton Group rallied 2.7 percent. The international building materials distributor and DIY retailer said it expects adjusted operating profit for the year ended 31 December 2021 at the top end of expectations.

Supermarket group Sainsbury's advanced 1.8 percent after raising its full-year profit outlook.

Dutch firm Philips slumped 13 percent after saying earnings would take a big hit from global supply chain shortages.

French cloud computing company OVHcloud jumped 6.3 percent. The company confirmed its full-year objectives after first-quarter revenue topped forecasts.

TeamViewer shares soared 14 percent. The remote connectivity and workplace digitalization solution provider reported that its preliminary fourth-quarter total billings increased by 20 percent or 17 percent on a constant currency basis, reflecting strong enterprise trading and continuous billings growth in the SMB segment.

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