EUROPE MARKETS: European Stocks Rise, Lifted By Oil Firms And Burberry

By Sara Sjolin, MarketWatch Features Dow Jones Newswires

U.S. Fed boss Yellen is in focus later in the day

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European stocks broadly rose on Wednesday, lifted by a rally in oil stocks and with Burberry driving luxury goods stocks higher after a well-received trading update.

The Stoxx Europe 600 index rose 0.6% to 381.38, rebounding from a 0.7% loss on Tuesday.

In focus on Wednesday, U.S. Federal Reserve Chairwoman Janet Yellenwill give a testimony before Congress at 3 p.m. London time, or 10 a.m. Eastern Time.

Over the next two days, the market will be looking for answers with regards to whether there will be more Fed interest-rate hikes and when the balance-sheet reduction for the central bank will begin, said James Hughes, chief market analyst at GKFX, in a note.

"I expect that the Fed Chair will keep her hawkish tone on monetary policy and continue to push the balance sheet reduction move, but hints of a timeline are what we want to hear," he added.

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Stock movers: In Europe, shares of Burberry Group PLC (BRBY.LN) (BRBY.LN) climbed 3.2% after the luxury retailer reported higher first-quarter comparable sales ( and underlying revenue.

Other luxury goods companies were also higher, with shares of LVMH Moët Hennessy Louis Vuitton SE (LVMUY) up 0.6%, Gucci-owner Kering SA (KER.FR)

DNB ASA (DNB.OS) put on 4.8% after the Norwegian bank posted second-quarter earnings that easily beat forecasts.

Oil companies were also up, rising alongside higher oil prices ( after the American Petroleum Institute on Tuesday reported a much larger-than-expected drop ( of 8.1 million barrels in U.S. crude supplies. Shares of BP PLC (BP.LN) (BP.LN) rose 1.4%, Repsol (REPYY) added 1.2% and Eni SpA (ENI.MI) picked up 1.2%.

On a downbeat note, shares of Amec Foster Wheeler PLC (AMFW.LN) after the U.K. Serious Fraud Office said it opened an investigation into the project management and services firm.

Pearson PLC (PSON.LN) slid 5%, building on a 5.1% drop from Tuesday when the education and publishing company said it will sell its 22% stake in Penguin Random House for $1 billion to German media company Bertelsmann SE, its joint-venture partner.

Indexes: The U.K.'s FTSE 100 index jumped 0.6% to 7,383.47.

Germany's DAX 30 index rose 0.4% to 12,485.62, while France's CAC 40 climbed 0.6% to 5,172.26.

The euro was down at $1.1452 compared with $1.1468 on Tuesday. The shared currency rose against the dollar on Tuesday after Donald Trump Jr. released a series of email exchanges about a June 2016 meeting to discuss potential incriminating information against Hillary Clinton.

(END) Dow Jones Newswires

July 12, 2017 04:51 ET (08:51 GMT)