Europe open: Stocks bounce back as investors eye Yellen's testimony

European stocks pushed higher in early trade, bouncing back from heavy losses in the previous session as investors sifted through a slew of earnings and looked to Federal Reserve chair Janet Yellen’s testimony before Congress.

At 0900 GMT, the benchmark Stoxx Europe 600 index was up 1.5%, Germany’s DAX was 1.2% higher and France’s CAC 40 was up 1.3%.

“Major European markets are trying to rally once again, but with previous rebounds having lacked conviction, falling sharply after early gains, sentiment remains fragile. Any early movement in markets is, however, just a precursor to this afternoon's main event, billed as possibly the most important debate of the year so far, as Janet Yellen makes her first official public statement since raising rates in December,” said Rebecca O’Keeffe, head of investment at stockbroker Interactive Investor.

“At the House Financial Services Committee today, Janet Yellen can expect a tough examination from lawmakers after the financial carnage that has ensued since the Fed hiked interest rates. Will she insist that the Fed is simply data-dependent, or might there be an acknowledgment that the world simply wasn't ready for higher US interest rates? With both the Bank of Japan and European Central Bank still in aggressive easing mode, the Fed appears more isolated than ever in its efforts to normalise US monetary conditions.”

Oil prices were higher on Wednesday, with West Texas Intermediate up 1.9% at $28.47 a barrel and Brent crude 2.1% firmer at $30.96 a barrel.

In corporate news, luxury brand Hermes was on the back foot after reporting a slowdown in 2015 sales growth.

Shares in Moller-Maersk tumbled after the Danish container shipping company said its underlying results for 2016 are likely to be significantly lower.

Arm Holdings, which designs chips for Apple, was also under the cosh after posting a rise in full year pre-tax profit and sales but noting a slowdown in the smartphone market.

Heineken nudged a touch lower after its full year sales numbers came in just below analysts’ expectations, but Carlsberg rallied as its fourth quarter numbers surpassed estimates.

Akzo Nobel was in the red after the specialty chemicals company's fourth quarter earnings missed consensus views.

Yellen’s testimony is due at 1500 GMT.