European stocks rise at open as Fed eases rate fears

In the eurozone, Frankfurt's DAX 30 climbed 0.1 per cent to 15,655.94 points and the Paris CAC 40 won 0.1 per cent to 6,617.53. ― Reuters pic
In the eurozone, Frankfurt's DAX 30 climbed 0.1 per cent to 15,655.94 points and the Paris CAC 40 won 0.1 per cent to 6,617.53. ― Reuters pic

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LONDON, June 23 ― European stocks rose slightly at the open today after Federal Reserve chief Jerome Powell eased market concerns over the timing of higher interest rates.

London's benchmark FTSE 100 index gained 0.2 per cent to 7,107.31 points.

In the eurozone, Frankfurt's DAX 30 climbed 0.1 per cent to 15,655.94 points and the Paris CAC 40 won 0.1 per cent to 6,617.53.

Markets are concerned that strong rises to inflation will cause the Fed and other central banks to raise interest rates faster than expected, impacting the global recovery.

But at a congressional hearing yesterday, Powell stressed that most of the factors pushing prices higher are “areas that are directly affected by the reopening” of the economy.

“There's no reason why it should leave a mark on inflation, say, a year or so ahead, because we should be through it, then,” Powell said.

Analysts saw his comments as the Fed boss downplaying the prospect of rate rises any time soon. ― AFP

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