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European Bourses Track Higher Midday On Federal Reserve Outlook

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Last updated: 05/13/2022 07:33:33

07:33 AM EDT, 05/13/2022 (MT Newswires) -- European bourses tracked higher midday Friday after Federal Reserve Chair Jerome Powell overnight reiterated that larger, 0.75% rate hikes by the US central bank are unlikely. Bank and tech issues paced gains.

Market denizens also weighed pre-bell Wall Street futures in the green, and higher closes overnight on Asian exchanges after China officials suggested anti-pandemic lockdowns could ease.

Industrial production in the Eurozone declined by 1.8% in March from February, and declined by 1.2% in the broader European Union, Eurostat reported. Economists had forecast a 2.0% decline.

The pan-continental Stoxx Europe 600 Index was up 1.4% mid-session.

The Stoxx Europe 600 Technology Index gained 2.1%, and the Stoxx 600 Banks Index rose 1.8%.

The Stoxx Europe Oil and Gas Index increased 1.4%, and the Stoxx Europe Food and Beverage Index rose 1.1%.

The REITE, a European REIT index, inclined 1.5%, while the Stoxx Europe 600 Insurance Index rose 1.2%.

On the national market indexes, Germany's DAX was up 1.4%, the FTSE 100 Index in London was up 1.6% and the CAC 40 in Paris was also up 1.6%. Spain's IBEX 35 was up 1.2%.

Yields on benchmark 10-year German bonds were higher, near 0.90%.

Front-month Brent crude oil futures were 1.7% higher at $109.31 per barrel.

The Euro Stoxx 50 volatility index fell 7.6% to 29.93, still indicating above-average volatility for European stock markets in the next 30 days, although lower than early March when the index tipped at 50. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

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