European stocks rise as Wall St, London closed – ABC Online

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European shares made modest gains in light trade, as Wall Street and the London market were closed for public holidays.

On Friday, the Dow Jones Index rose 45 points to 17,873.

US Federal Reserve boss Janet Yellen said another rise in interest rates would likely be appropriate “in the coming months.”

In Germany, the DAX increased about half a per cent, or 47 points, to 10,333.

Consumer prices in Germany rose out of deflation to zero over the year to May because of rises in rents and services. However, energy prices fell.

The CAC 40 in Paris gained 15 points, or a third of a per cent, to 4,529.

The French economy expanded more than previously thought in the first quarter because of higher consumer spending and business investment. Official GDP data was revised upwards by 0.1 per cent to 0.6 per cent.

A survey by the European Commission showed economic confidence improved in France and the rest of the eurozone.

The Euro Stoxx Index rose 11 points, or 0.4 per cent, to 3,090.

In futures trade, the ASX SPI 200 was down seven points to 5,405.

Janet Yellen’s comments on rate increases saw gold prices fall as the greenback rose.

Spot gold fell to its lowest since February, below $US1,200 an ounce overnight, but rebounded to $US1,209 an ounce.

Brent crude oil futures rose by 40 cents to $US49.72 a barrel.

OPEC countries meet in Vienna on Thursday to discuss production, but no change to output is expected.

Iron ore was weaker, down $US0.88 to $US50.27 a tonne.

The Australian dollar made ground overnight after falling to 71.5 cents yesterday following official figures showing that company profits had dropped by nearly 5 per cent in the March quarter.

Around 8:30am (AEST) it was trading near 71.8 US cents, 49.08 British pence, 64.44 euro cents, 79.81 Japanese yen and $NZ1.073.