Investing.com - European stocks were sharply higher on Friday, as global growth concerns subsided after Federal Reserve Chair Janet Yellen suggested the possibility of a rate hike later this year.
During European morning trade, the EURO STOXX 50 rallied 2.31%, France’s CAC 40 advanced 2.46%, while Germany’s DAX 30 surged 2.30%.
In a speech late Thursday, Fed Chair Janet Yellen said she expected the central bank to begin raising rates later in 2015, as long as inflation remained stable and the U.S. economy was strong enough to boost employment.
European equities also remained supported after the German research institute Ifo reported on Thursday that its business climate index ticked up to 108.5 this month from August’s 108.4. It was the highest reading in four months and was ahead of forecasts of 108.0.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) surged 2.65% and 2.46%, while Germany's Commerzbank (XETRA:CBKG) and Deutsche Bank (XETRA:DBKGn) rallied 1.63% and 1.66%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) advanced 1.80% and 2.12% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) jumped 1.57% and 2.45%.
Elsewhere, German carmaker Volkswagen (XETRA:VOWG) rallied 1.94% as the company's next chief executive was set to be announced at a board meeting later Friday.
Former CEO Martin Winterkorn resigned on Wednesday following the scandal surrounding the emissions of its diesel cars.
Sanofi (PARIS:SASY) added to gains, with shares up 3.03% amid reports the drugmaker may sell its bio-surgery and renal units.
In London, commodity-heavy FTSE 100 jumped 1.83%, boosted by sharp gains in the mining sector.
Shares in Bhp Billiton (LONDON:BLT) and Rio Tinto (LONDON:RIO) surged 2.55% and 2.65% respectively, while Anglo American (LONDON:AAL) advanced 2.99% and Glencore (LONDON:GLEN) saw shares soar 5.36%.
Financial stocks were also broadly higher, as HSBC Holdings (LONDON:HSBA) gains 1.78% and Lloyds Banking (LONDON:LLOY) rallied 1.88%, while Barclays (LONDON:BARC) and the Royal Bank of Scotland (LONDON:RBS) climbed 2.28% and 2.29% respectively.
Synergy Health Plc (LONDON:SYR) skyrocketed 44.11% after a U.S. judge denied a move by U.S. officials to block the company’s takeover by Steris Corp., paving the way for a $1.9 billion merger.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.72% climb, S&P 500 futures signaled a 0.65% gain, while the Nasdaq 100 futures indicated a 0.64% increase.