Europe markets rise despite downbeat Yellen comments

Stock markets in Europe and the US pushed higher despite downbeat comments from Federal Reserve chair Janet Yellen, but only after Asia sank again on fears of another banking crisis and global recession.
In a prepared testimony to Congress Yellen said that the outlook for the US economy had become more cloudy.
While she made no comment on whether the Fed still expected to continue raising interest rates this year, her concerns probably lowered the possibility of an increase in its next policy meeting in March.
The Fed holding off is a plus for most equities companies and consumers will be able to borrow funds at lower rates for longer.
“Europe (is) trying to rally, with financials trying to lead the charge after their recent falls,” said Russ Mould, investment director at trading firm AJ Bell.
“Whether this proves to be nothing more than a dead-cat bounce remains to be seen – but given the possible link between oil and banking stocks, any sustained upward movement in crude would be welcome,” he told AFP.
The German market was also buoyed by Deutsche Bank, whose share price soared on speculation it may be considering a bond buyback programme to help ease concern about its funds.
Shares in Germany’s biggest lender – which had shed about 13% over the course of Monday and Tuesday – shot up 16.6% to an intraday high of €15.43.
They were showing a gain of 5.3% to €14.43 in afternoon trading.
Media reports have suggested it is considering a bond buyback, but a bank spokesman declined to comment.
Deutsche Bank shares, along with those of other European lenders, have taken a severe bashing this week.
Markets remain cautious over the outlook for banking sector profitability, according to CMC Markets analyst Michael Hewson.
“Equity markets are trading cautiously ... after three days of losses brought on by concerns surrounding the profitability and resilience of the banking sector,
particularly in Europe,” Hewson added.
“The imposition of negative rates by the European Central Bank and other central banks has raised concerns that they could have a toxic effect on bank margins at a time of slowing growth at a time when banks are being expected to bolster their balance sheets.
“With no effective back-stop mechanism in place for European banks, this is raising concerns about the overall stability of the European banking sector as a whole.”
The Chicago Board Options Exchange Volatility Index, which measures market turbulence, is sitting around five-month highs and has jumped 20% since Friday.
At 9:36 am ET (1436 GMT), the Dow Jones industrial average  was up 56.77 points, or 0.35%, at 16,071.15.
The S&P 500 was up 10.97 points, or 0.59%, at 1,863.18 and the Nasdaq Composite index was up 37.33 points, or 0.87%, at 4,306.10.
Six of the 10 major sectors were higher, led by the 1.11% rise in the technology sector. Microsoft’s  1.3% rise was the biggest positive influence on the S&P 500 and the Nasdaq.