February 10, 2016 - 2:16 AM EST
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European Markets Bounced Back After Bank Stocks Rally

VIENNA
(dpa-AFX) - The European markets ended Wednesday's session solidly in the green, rebounding from the 2-year low set yesterday. A strong rebound in bank stocks propelled the market higher. Buyers stepped in to buy European banks at low prices, following the sharp losses bank stocks have endured in recent days.

Crude oil prices are attempting to stabilize on reports that

Iran
is ready to talk with
Saudi Arabia
over the current conditions in international oil markets. The
U.S.
EIA also released a report today that showed an unexpected decrease in crude oil inventories last week.

Investors are keeping a close eye on the question and answer portion of Janet Yellen's testimony before the House Financial Services Committee. In prepared remarks, Yellen stressed that monetary policy is not on a preset course and reiterated the oft-repeated statement that the path of the federal funds rate will depend on incoming data.

Yellen acknowledged financial conditions have recently become less supportive of growth, citing declines in equity prices, higher borrowing rates for riskier borrowers, and a further appreciation of the dollar.

"These developments, if they prove persistent, could weigh on the outlook for economic activity and the labor market, although declines in longer-term interest rates and oil prices provide some offset," Yellen said.

She added, "Still, ongoing employment gains and faster wage growth should support the growth of real incomes and therefore consumer spending, and global economic growth should pick up over time, supported by highly accommodative monetary policies abroad."

Reflecting the outlook, Yellen said the Fed expects to raise interest rates only gradually, leading to a moderate expansion in economic activity in the coming years.

The Euro Stoxx 50 index of eurozone bluechip stocks increased 1.92 percent, while the Stoxx Europe 50 index, which includes some major

U.K.
companies, added 1.87 percent.

The DAX of

Germany
climbed 1.55 percent and the CAC 40 of
France
rose 1.59 percent. The FTSE of the
U.K.
gained 0.71 percent, but the SMI of
Switzerland
finished higher by 1.96 percent.

In

Frankfurt
, Deutsche Bank surged 10.28 percent on a report that the lender is considering buying back several billion euros of its debt. Commerzbank also leaped 8.22 percent

Heidelberger Druckmaschinen jumped 4.13 percent. The printing machines maker reported a net profit of 7 million euros for the third quarter, compared to a net loss of 53 million euros last year.

Fresenius climbed 3.32 percent and Fresenius Medical Care advanced 2.50 percent.

RWE fell 2.97 percent and E.ON declined 3.95 percent.

In

Paris
, Societe Generale increased 8.99 percent and BNP Paribas rose 4.89 percent. Credit Agricole also finished higher by 4.72 percent.

Technip decreased 2.53 percent and Total fell 0.77 percent.

In

London
, Hikma Pharmaceuticals dropped 2.51 percent. The company announced revised terms for its previously announced acquisition of Roxane Laboratories. The upfront gross cash consideration will be reduced by US$535 million following the receipt of new information on Roxane's financial performance in 2015.

Tullow Oil sank 8.54 percent after it reported a loss from continuing activities before tax of $1.3 billion for the year ended 31 December 2015, compared to a loss of $2.1 billion, a year ago.

ARM Holdings weakened by 4.36 percent. The chipmaker reported that its fourth-quarter profit before tax, on IFRS basis, was 113.7 million pounds, 24 percent higher than last year's 91.4 million pounds.

Brewer Carlsberg rallied 4.02 percent in

Copenhagen
and Heineken lost 3.07 percent in
Amsterdam
after forecasting higher profits this year.

Akzo Nobel fell 1.89 percent after the paints and specialty chemicals firm missed consensus profit forecasts for the fourth quarter.

Opera Software surged 33.48 percent in

Oslo
after the maker of web browsers said it had received a takeover offer of $1.2 billion (S$1.7 billion) from a group of Chinese technology companies.

French industrial output declined the most in 19 months in December, data from the statistical office Insee revealed Wednesday. Industrial production fell 1.6 percent month-on-month in December, confounding expectations for a 0.3 percent rise. This was the second consecutive fall in production. Output had decreased 0.9 percent in November.

Italy's
industrial production decreased for the second straight month in December, defying economists' expectations for an increase, figures from the statistical office Istat showed Wednesday. Industrial production fell a seasonally adjusted 0.7 percent month-over-month in December, faster than the 0.5 percent drop in November. Meanwhile, it was expected to climb by 0.3 percent.
U.K.
industrial production declined at a faster pace in December, rendering the quarterly performance the worst in nearly three years, which is expected to have dragged economic growth further at the end of 2015.

Industrial production fell 1.1 percent month-on-month, faster than November's 0.8 percent drop, data from the Office for National Statistics showed Wednesday. This was the second consecutive fall and the biggest drop in three years. Economists had forecast output to remain flat in December.

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Source: Equities.com News (February 10, 2016 - 2:16 AM EST)

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