World stock markets steadied yesterday as traders treaded cautiously ahead of a speech by US central bank chief Janet Yellen that could shed more light on a coming rate hike.
A modest upgrade to the estimate for US economic growth at the start of the year helped send US shares marginally higher ahead of a long holiday weekend.
Traders in Europe appeared largely uninspired, with scant major corporate or economic news to get their teeth into.
However, equities reached their highest level for the month.
Shares in London’s FTSE, Paris’ CAC and the DAX in Frankfurt all edged marginally higher. The FTSE 100 was up 0.1% at 6,270.79 points, DAX 30 was up 0.1% at 10.286,31 points and CAC 40 was up 0.05% at 4,514,74 points at close.
Traders were awaiting clues about the prospects of an imminent US interest rate hike when the Federal Reserve chief speaks at Harvard University later, after recent hints of an increase in June or July from Fed officials.
A two-day global stocks rally showed signs of fatigue on Thursday as oil prices briefly breached $50 a barrel for the first time this year, before retreating.
One bright spot on the otherwise relatively quiet corporate news front came from strong demand for shares in Philips’s lighting division, which made its stock market debut in Amsterdam.
The shares closed well above their initial flotation price of €20, rising 10% to €22.
Similarly French homeware designer Maisons du Monde saw solid demand for its initial listing on the Paris stock exchange, with shares closing 5.9% higher at €18.00.
The US Commerce Department said first-quarter growth was at an annual rate of 0.8%, up from the originally estimated 0.5%.
Ahead of Yellen, markets digested comments from a Group of Seven summit.
A final communique from the G7 leaders emphasised economic growth was an “urgent priority” and highlighted growing international alarm over the possibility of a so-called Brexit as the UK prepares for a June 23 referendum on whether to leave the EU.
“Global growth is our urgent priority,” the G7 said, adding that growth remained “moderate and below potential”.
However, Global Economics’ Michael Pearce said he saw reasons to be more upbeat on global prospects.
“Promoting growth is a worthwhile aim but the implication that the world economy is on the brink of a recession is wide of the mark,” he said in a note to investors.
Leaders added that a Brexit would “reverse the trend towards greater global trade and investment and the jobs they create”, and that it was a “serious risk to growth”.

Related Story