Investing.com - European stocks moved higher on Wednesday, led by gains in the financial sector after comments by Federal Reserve Chair Janet Yellen on Tuesday and as investors focused on a fresh batch of corporate earnings.
During European morning trade, the EURO STOXX 50 climbed 0.52%, France’s CAC 40 rose 0.34%, while Germany’s DAX 30 gained 0.48%.
Sentiment improved after Ms. Yellen told the U.S. Senate Banking Committee on Tuesday that waiting too long to raise interest rates would be "unwise," given the rise in inflation and economic growth.
However, she also expressed caution amid sustained uncertainty over economic policies under President Donald Trump's administration.
Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) jumped 1.69% and 1.93%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) rallied 1.34% and 1.59%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) climbed 1.20% and 1.25% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) advanced 1.08% and 2.59%.
Elsewhere, Heineken (AS:HEIN) reported a rise in full-year earnings and revenue, sending shares up 3.93%.
On the downside, Danone SA (PA:DANO) slid 0.37% after the French company unveiled a €1 billion cost cutting plan over three years, saying the turnaround of its European dairy division was taking longer than expected.
In London, FTSE 100 gained 0.40%, as U.K. lenders tracked their European counterparts higher.
Shares in HSBC Holdings (LON:HSBA) jumped 1.02% and Lloyds Banking (LON:LLOY) rallied 1.31%, while the Royal Bank of Scotland (LON:RBS) and Barclays (LON:BARC) advanced 1.62% and 1.72% respectively.
Mining stocks added to gains on the commodity-heavy index. Glencore (LON:GLEN) rose 0.26% and Anglo American (LON:AAL) climbed 0.68%, while rival company BHP Billiton (LON:BLT) jumped 1.19%.
Meanwhile, Tui AG NA (LON:TUIT) was one of the worst performers on the index, with shares erasing the previous session’s sharp gains and plunging 5.25% after saying on Tuesday that bookings for the winter season climbed 4% and that revenues increased 8% compared with the same period last year.
Reckitt Benckiser Group PLC (LON:RB) was also on the downside, with shares tumbling 1.13%, as enthusiasm waned following last Friday’s announcement that the company sealed a deal to buy US baby food maker Mead Johnson Nutrition Co for $16.60 billion.
In the U.S., equity markets pointed to a setady to higher open. The Dow Jones Industrial Average futures pointed to a 0.17% rise, S&P 500 futures showed a 0.02% uptick, while the Nasdaq 100 futures indicated a 0.07% gain.