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European stocks are jumping as markets shrug off the US Federal Reserve's latest comments

Will Martin   

European stocks are jumping as markets shrug off the US Federal Reserve's latest comments
Finance2 min read

Stocks in Europe are charging on Friday, rebounding from the big losses seen on Thursday, as markets shrug off uncertainty caused by the prospect of a sooner than expected Fed interest rate hike and the disappearance of EgyptAir flight MS804.

Both caused widespread worry in the Europe's markets, pushing them substantially lower to the close.

However as a reaction to strong gains in Asia overnight, European stocks are bouncing on Friday.

At around 8:25 a.m. BST (3:25 a.m. ET) all of Europe's major bourses are higher by around 1%, with the FTSE 100 up by 1.5%, leading the charge. Here's how things look:

FTSE 1 May 20

Investing.com

On a stock-by-stock basis, Britain's biggest risers on the day so far are Shell and Glencore, up by 2.79% and 2.91% respectively, as investors in the commodity firms react to marginally higher commodity prices on Friday morning.

Here's the scoreboard across Europe:

  • FTSE 100: 1.5% to 6,144
  • German DAX: 1.15% to 9,908
  • Eurostoxx 50: 1.32% to 2,961
  • French CAC 40: 1.46% to 4,345
  • Italian FTSE MIB: 1.3% to 17,774
  • Spanish IBEX 35: 1.25% to 8,783

In an email sent to Business Insider just before the open, Accendo Markets' Mike van Dulken, said (emphasis his):

Asian bourses post gains that contrast stateside losses. This comes as concerns about US rate hike timing following the release of the latest Fed FOMC minutes ease into the end of what has been an exciting yet volatile week. A strong USD settling to allow commodities (notably Oil) regain composure.

A weaker Yen thanks to Dollar stability and a bounce by Gold easing safehaven seeking that had favoured the far East currency (while the rate-sensitive yellow metal fell) is helping Japan's Nikkei - exporters in particular. Energy names are more buoyant via the oil price recovery. The Aussie ASX is benefiting from commodities finding their feet on a calmer US dollar.

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