European Shares Pare Early Gains Before Yellen Speech

VIENNA (Alliance News) - European shares pared early gains on Tuesday as weakness in oil prices ...

Alliance News 29 March, 2016 | 11:08AM
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VIENNA (Alliance News) - European shares pared early gains on Tuesday as weakness in oil prices and uncertainty over Fed policy prompted traders to lock in some intra-day gains.

Federal Reserve Chair Janet Yellen is due to speak to the Economic Club of New York later today, with investors waiting to see whether she will echo the slightly hawkish tone emanating from her colleagues.

The pan-European Stoxx Europe 600 index was up 0.4% as investors returned from a long Easter weekend. Elsewhere, the German DAX, France's CAC 40 and the UK's FTSE 100 were up between 0.1% and 0.5%.

Automakers BMW and Daimler rose about half a percent in Frankfurt as the euro fell against the dollar ahead of Yellen's speech and the US jobs report due later in the week.

Deutsche Bank lost 1% amid reports the lender is hiring 100 people in a bid to boost equities trading business. Rival Commerzbank traded slightly lower after rising more than 1% in early trade.

Airline stocks traded mostly higher despite reports that an EgyptAir domestic flight from Alexandria to Cairo was hijacked. Deutsche Lufthansa gained 0.2%, EasyJet rose 2% and International Consolidated Airlines Group rose half a percent.

Drug maker Sanofi gained 1% in Paris after announcing the appointment of Yong-Jun Liu as Head of Research, Global R&D, effective April 1.

General insurance firm RSA Insurance Group climbed 1.7% in London after brokerage upgrades.

Miners lost ground, with BHP Billiton, Glencore and Anglo American tumbling 3-4%. Oil firms BP PLC and Royal Dutch Shell also traded lower.

ENI shares traded marginally higher in the wake of reports that Exxon Mobil is in talks to buy a 15% stake in the Italian energy firm.

Copyright RTT News/dpa-AFX

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