European stocks rose on Wednesday after the new Federal Reserve chief said she would stick with stimulus, while US lawmakers agreed to raise the debt ceiling and avert another stand-off.
London's FTSE 100 index climbed 0.24 percent to 6,688.41 points in late morning deals, as investors also awaited the Bank of England's quarterly forecasts.
There was growing speculation that the bank could alter forward guidance on interest rates.
Frankfurt's DAX 30 added 0.71 percent to 9,545.82 points and in Paris the CAC 40 advanced 0.45 percent to 4,302.59 compared with Tuesday's closing values.
Markets rallied after Janet Yellen told Congress she expected to continue predecessor Ben Bernanke's plan to wind down its bond-buying gradually and keep interest rates low until the jobs market improves significantly.
"European equities are trading once again higher ... after new Fed chief Janet Yellen assured financial markets that she has no plans to change the direction taken by her predecessor Ben Bernanke," said trader Markus Huber at broker Peregrine & Black.
"No rise in US interest-rates is imminent in the near future and ... the Fed will continue to stick to their monthly tapering plans."
Tokyo stocks climbed 0.56 percent on Wednesday, while Sydney jumped 1.06 percent and Seoul added 20 percent.
Elsewhere, Hong Kong rallied 1.47 percent and Shanghai won 0.30 percent in value.
Investors were also lifted by Chinese data showing a better-than-forecast jump in exports in January.
In her first testimony since taking the Fed chair on February 1, Yellen said the world's number one economy is expected to grow this year and next at a moderate pace, despite some recent poor data that has sparked fears of a slowdown.
Investors were reassured by her comments following recent turmoil on global markets.
In Wall Street action on Tuesday the Dow jumped 1.22 percent, the S&P 500 put on 1.11 percent and the Nasdaq added 1.03 percent.
Adding to the upbeat mood was news that Republicans in the House of Representatives had backed off another showdown and waved through a bill to increase the US government's debt limit until March 2015 with no strings attached.
Euro firms
In foreign exchange trading, the European single currency climbed to $1.3644 from $1.3638 late in New York on Tuesday.
The euro firmed to 82.88 British pence from 82.87 pence, while the pound rose to $1.6460 from $1.6451.
The price of gold rose to $1,286.47 an ounce on the London Bullion Market, from $1,282 on Monday.
In company news, Total's share price rallied 1.35 percent to 44.175 euros in Paris, despite news that the French oil giant's annual net profit sank 20 percent to 8.4 billion euros ($11.45 billion) on higher exploration charges and crumbling refinery margins in Europe.
Shares in French bank Societe Generale led the CAC 40 index with a gain of 4.61 percent to 46.31 euros on nearly tripled 2013 net profit.
In London, Reckitt Benckiser shares rose 0.64 percent to 4,858 pence, after the British household goods firm said profits dipped last year on slowing demand in emerging markets.
Net profits dipped 4.5 percent to £1.74 billion ($2.87 billion, 2.09 billion euros) in 2013 from a year earlier.
European stocks rose on Wednesday after the new Federal Reserve chief said she would stick with stimulus, while US lawmakers agreed to raise the debt ceiling and avert another stand-off.
London’s FTSE 100 index climbed 0.24 percent to 6,688.41 points in late morning deals, as investors also awaited the Bank of England’s quarterly forecasts.
There was growing speculation that the bank could alter forward guidance on interest rates.
Frankfurt’s DAX 30 added 0.71 percent to 9,545.82 points and in Paris the CAC 40 advanced 0.45 percent to 4,302.59 compared with Tuesday’s closing values.
Markets rallied after Janet Yellen told Congress she expected to continue predecessor Ben Bernanke’s plan to wind down its bond-buying gradually and keep interest rates low until the jobs market improves significantly.
“European equities are trading once again higher … after new Fed chief Janet Yellen assured financial markets that she has no plans to change the direction taken by her predecessor Ben Bernanke,” said trader Markus Huber at broker Peregrine & Black.
“No rise in US interest-rates is imminent in the near future and … the Fed will continue to stick to their monthly tapering plans.”
Tokyo stocks climbed 0.56 percent on Wednesday, while Sydney jumped 1.06 percent and Seoul added 20 percent.
Elsewhere, Hong Kong rallied 1.47 percent and Shanghai won 0.30 percent in value.
Investors were also lifted by Chinese data showing a better-than-forecast jump in exports in January.
In her first testimony since taking the Fed chair on February 1, Yellen said the world’s number one economy is expected to grow this year and next at a moderate pace, despite some recent poor data that has sparked fears of a slowdown.
Investors were reassured by her comments following recent turmoil on global markets.
In Wall Street action on Tuesday the Dow jumped 1.22 percent, the S&P 500 put on 1.11 percent and the Nasdaq added 1.03 percent.
Adding to the upbeat mood was news that Republicans in the House of Representatives had backed off another showdown and waved through a bill to increase the US government’s debt limit until March 2015 with no strings attached.
Euro firms
In foreign exchange trading, the European single currency climbed to $1.3644 from $1.3638 late in New York on Tuesday.
The euro firmed to 82.88 British pence from 82.87 pence, while the pound rose to $1.6460 from $1.6451.
The price of gold rose to $1,286.47 an ounce on the London Bullion Market, from $1,282 on Monday.
In company news, Total’s share price rallied 1.35 percent to 44.175 euros in Paris, despite news that the French oil giant’s annual net profit sank 20 percent to 8.4 billion euros ($11.45 billion) on higher exploration charges and crumbling refinery margins in Europe.
Shares in French bank Societe Generale led the CAC 40 index with a gain of 4.61 percent to 46.31 euros on nearly tripled 2013 net profit.
In London, Reckitt Benckiser shares rose 0.64 percent to 4,858 pence, after the British household goods firm said profits dipped last year on slowing demand in emerging markets.
Net profits dipped 4.5 percent to £1.74 billion ($2.87 billion, 2.09 billion euros) in 2013 from a year earlier.
