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Monday, September 26, 2016

European Stocks Extend Gains Amid Bernanke Bounce

European Stocks Extend Gains Amid Bernanke Bounce

LONDON (AFP) – European stock markets rose further on Friday, building on recent gains on the back of a prolonged U.S. stimulus program, traders said.

London’s FTSE 100 index of leading shares climbed 0.53 percent to stand at 6,578.34 points approaching midday in the British capital.

Frankfurt’s DAX 30 advanced 0.98 percent to 8,238.46 points and in Paris the CAC 40 gained 0.39 percent in value to 3,884.24.

Indices had also risen on Thursday after the Federal Reserve indicated that it was in no rush to end its huge program for stimulating the U.S. economy.

Federal Reserve head Ben Bernanke said on Wednesday that the U.S. central bank’s stimulus drive would be kept in place “for the foreseeable future”.

The news poured cold water on market expectations that the Fed would start to pull back on massive bond-buying later this year, which has sent global equity indices reeling in recent weeks.

“Markets are again nicely in green, still feeling the effects of Bernanke’s dovish comments from Wednesday, even though caution over Chinese growth — the world’s second largest economy — has returned to the fore,” Gekko Markets trader Anita Paluch said on Friday.

The euro fell to $1.3042 from $1.3092 late in New York on Thursday. The dollar grew to 99.06 yen from 98.90 yen.

The price of gold dropped to $1,276.16 an ounce from $1,285 Thursday on the London Bullion Market.