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Europe: Shares climb, with retailer Metro and miners outperforming
[LONDON] European shares rose on Wednesday as Federal Reserve Chair Janet Yellen called for caution on raising interest rates, boosting equities, while German retailer Metro surged on demerger plans.
The pan-European FTSEurofirst 300 index advanced 1 per cent. Britain's FTSE 100 rose 1.2 per cent, Germany's DAX gained 0.7 per cent while the euro zone's blue-chip Euro STOXX 50 index rose 0.8 per cent.
Yellen said on Tuesday that the US central bank should proceed only cautiously as it looks to raise interest rates, pushing back on a handful of her colleagues who have suggested another move may be just around the corner.
Yellen's comments weakened the US dollar on currency markets, which in turn supported the shares of mining and energy companies since a weaker dollar makes commodities more affordable for investors holding other currencies.
Metro AG also jumped 9 per cent after the company proposed to split itself in two, with its wholesale and food business transferred to a separate entity and the consumer electronics business remaining part of the existing company.