Europe close: Stocks gain after Yellen
Stocks were mostly higher even after US central bank chief flagged a higher likelihood that a rate hike was on the cards next month.
The benchmark Stoxx Europe 600 index rose 0.62%, Germany's DAX was up 0.20% and France’s CAC 40 gained 0.58%.
In testimony to the Joint Economic Committee of the US Congress, Janet Yellen said: "At our meeting earlier this month, the Committee judged that the case for an increase in the target range had continued to strengthen and that such an increase could well become appropriate relatively soon if incoming data provide some further evidence of continued progress toward the Committee's objectives."
She also indicated she was planning to serve out her entire term and warned against political interference in the setting of monetary policy.
Helping to boost sentiment as well, initial US weekly unemployment claims dropped by 19,000 during the week ending on 12 November to reach 235,000, according to the Department of Labor (consensus: 257,000).
In parallel, data from the US Commerce Department revealed that housing starts jumped 25.5% in October to reach annualised pace of 1.323m, far outpacing economists' forecasts for a rise to 1.156m.
Oil prices rose, with Brent crude up 0.2% to $46.72 per barrel.
On the data front in the euro area, inflation was 0.5% on the year in October, up from 0.4% the month before, the highest reading in 28 months, according to Eurostat figures. Consumer prices were up 0.2% last month in the 19 countries that share the euro.
Connor Campbell, analyst at Spreadex, said: “The steady increase in Eurozone inflation means Mario Draghi and co. might think twice about reducing their own rates.”
He added that the data also had a positive effect on the euro. “Not only did it take 0.2% off of sterling, its gains against the dollar were, at half a percent, higher than the 0.3% rise managed by the pound.”
In corporate news, Italian investment bank Mediobanca edged lower despite its plan to raise profits by 43% by 2019 partly through around €1bn in acquisitions.
Food retail group Ahold Delhaize was in the red as its third-quarter results missed expectations, while Royal Mail fell after it said half-year revenue edged up thanks to its European business but the EU referendum resulted in a reduction in UK marketing activity.
Building materials group CRH gained after earlier losses as it reported a 6% rise in cumulative sales in the first nine months of the year and said it continues to expect earnings for the year to be in excess of €3bn.
Zurich Insurance edged up as it said it was aiming to maintain an annual dividend of CHF17 and cut its costs further.
Julius Baer was also up after reporting that assets under management in the first ten months of the year rose 9%.
Johnson Matthey lost its earlier gains as it posted a 5% rise in first-half underlying pre-tax profit, while Rio Tinto gained after terminating the contracts of two directors following an internal review into a controversial payment to a consultant concerning the Simando iron ore project in Guinea.