Brussels/Frankfurt/Paris, July 16, (dpa-AFX/GNA) – German stocks advanced on Friday after U.S. Treasury Secretary Janet Yellen told CNBC that she expects prices ultimately will fall back to more normal levels after “several more months of rapid inflation.”
She cited market-based inflation measures as proof that longer-term expectations remain in check.
Fed Chair Jerome Powell also reiterated expectations for inflation pressures to fade in a hearing before the Senate Banking Committee on Thursday. The benchmark DAX rose 50 points, or 0.3 per cent, to 15,680 after falling around 1 per cent the previous day.
Travel and leisure stocks gained ground, with airline Lufthansa climbing nearly 2 percent after U.S. President Joe Biden said the United States is reviewing when it can lift the COVID-related travel ban for European citizens.
Sportswear company Puma lost 2 per cent despite posting strong sales and lifting FY21 outlook. Automakers were broadly higher, with Volkswagen climbing 1.4 per cent after industry data showed Europe’s passenger car registrations increased at a moderate pace in June.
Car registrations increased 10.4 per cent year-on-year in June, but slower than the 53.4 per cent growth posted in May, the European Automobile Manufacturer’s Association said. Among the major EU car markets, Germany posted the biggest gain with a 24.5 per cent increase.
GNA