By Anisha Sircar and Ambar Warrick
(Reuters) – European stocks ended higher on Wednesday, supported by commodities-linked stocks, which advanced on expectations of more stimulus from major importer China, while easing bond yields took pressure off the tech sector.
The pan-European STOXX 600 index closed up 0.65% at 486.20 points, with the basic resources and energy sectors up 3.2% and 2.3% respectively.
Commodity prices rose after weaker-than-expected data on producer inflation in China showed more room for monetary easing, which should prompt the central bank to release more money into the economy.
Bets on a quick tightening of monetary policy in the United States have eased after Federal Reserve Chair Jerome Powell said it could take several months to make a decision on reducing the central bank’s $9 trillion portfolio.
US inflation data for December also came in line with expectations, although the annual rate is around 40-year highs.
Bond yields on both sides of the Atlantic eased, allowing tech stocks to extend the rally for a second day. The sector advanced 1.5%.
In LONDON, the Financial Times index advanced 0.81% to 7,551.72 points.
In FRANKFURT, the DAX index rose 0.43% to 16,010.32 points.
In PARIS, the CAC-40 index gained 0.75% to 7,237.19 points.
In MILAN, the Ftse/Mib index appreciated by 0.65%, at 27,714.26 points.
In MADRID, the Ibex-35 index registered an increase of 0.16%, to 8,770.30 points.
In LISBON, the PSI20 index rose by 0.40% to 5,663.98 points.
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