Aside from the post-Macron first-round-win in April, stocks across Europe surged to their best day since last September today, surging higher after Yellen’s dovish comments, presumably due to the market’s belief that as goes The Fed, so goes the rest of the hawkish hangers-on…
As Reuters reports, a run higher for energy shares and miners, as well as strong updates from Norwegian lender DNB, and a more dovish tone from U.S. Federal Reserve Chief Yellen, helped drive European shares up on Wednesday, though renewed pain for publisher Pearson weighed on the media sector. European shares made early gains and were given a second wind in afternoon trading when Federal Reserve Chair Janet Yellen dampened expectations of more than one interest rate hike this year. All sectors were in positive territory, with miners, construction and healthcare sectors leading. A slower pace of interest rate raises is positive for equities, which benefit when their yield is relatively higher than other asset classes such as bonds.
So much for “it’s all about earnings”…
via http://ift.tt/2ujlMGL Tyler Durden