European Equities Continue Rally as Yellen Speaks
European markets are gaining once again as US President Donald Trump visits France, Fed Chair Janet Yellen gets set to talk once again, corporate rumours wobble the bourses and Britain’s fiscal watchdog warns of a challenging political environment.
In corporate news shares in drugs giant AstraZeneca have dropped over 4% on reports its chief executive, is to leave to company to join Israel-based Teva Pharmaceutical Industries. Meanwhile ASOS reported an increase of 32 percent in sales in the first four months to June. The online retailer said the rise was powered by sales to countries outside Europe and the US, where revenue rose 54 per cent.
The Office for Budget Responsibility urges the UK government to prepare for ‘unexpected’ surprises in its latest Fiscal Risk report. The OBR added that UK politicians should consider financial crises are “almost inevitable over a 50-year horizon”, and therefore prepare accordingly.
Inflation picked up in Germany but slowed in France. For Europe’s biggest economy it rose to 1.5 per cent from 1.4 per cent in May. But in France the annual inflation rate slipped to just 0.8 per cent in France, from 0.9 per cent in May.
--- Written by Katie Pilbeam, DailyFX