By RTT News, September 16, 2013, 12:00:00 PM EDT
(RTTNews.com) - The majority of the European markets rallied higher Monday, after former Treasury secretary and senior White House economic adviser Larry Summers withdrew from consideration to succeed Ben Bernanke as Federal Reserve chairman. The announcement appears to have paved the way for Federal Reserve Chairwoman Janet Yellen to ascend to the top job. Yellen is perceived by investors as more dovish than Summers.
The Federal Reserve will also begin its 2-day meeting on Tuesday, to discuss monetary policy. Investors will be watching for Wednesday's announcement, to see if the Fed will begin to taper its stimulus measures.
Lack of momentum in delivering the U.K.'s infrastructure projects could undermine the government's efforts to return to sustainable growth, the Confederation of British Industry and KPMG said in a joint report on Monday.
The survey of 526 business leaders showed an improving UK infrastructure investment environment, but found that 65 percent of firms believe the government policies will have no tangible impact, or even a negative one.
The Euro Stoxx 50 index of eurozone bluechip stocks increased by 0.90 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.45 percent.
The DAX of Germany climbed by 1.22 percent and the CAC 40 of France advanced by 0.92 percent. The FTSE 100 of the U.K. rose by 0.51 percent, but the SMI of Switzerland fell by 0.11 percent.
In Frankfurt, Deutsche Lufthansa increased by 0.36 percent. The airline announced that its Chairman Christoph Franz will not renew his employment contract when it expires on May 31st 2014. Also, there are reports that Lufthansa plans to split the order for dozens of long-haul jets, between EADS NV's unit Airbus SAS and Boeing Co.
Volkswagen gained 0.88 percent, on reports the company is considering increasing its stake in its Chinese joint venture to 50 percent from 40 percent.
Siemens rose by 0.99 percent, after Deutsche Bank named it as one of its preferred stocks.
In London, Anglo American climbed by 0.92 percent. The global mining giant announced its U.S. subsidiary Anglo American Pebble LLC has given notice under the Pebble limited partnership agreement that it is withdrawing from the Pebble copper project in Alaska.
Vedanta Resources increased by 1.98 percent, after its subsidiary named Tom Albanese as its new Chairman.
Fresnillo plunged by 12.77 percent, due to concerns over a large levy on the mining sector in Mexico.
Barclays advanced by 1.26 percent, after Nomura upgraded its rating on the lender to "Buy" from "Reduce."
Wolseley fell by 0.09 percent, after Credit Suisse downgraded it to "Neutral" from "Outperform."
Roche Holding lost 0.51 percent in Zurich. The pharma giant nominated Christoph Franz, chief executive of German aviation group Deutsche Lufthansa, to replace Franz Humer as its new chairman of the board.
Hennes & Mauritz gained 3.97 percent in Stockholm, after it reported a 4 percent increase in August same store sales.
Novo Nordisk increased by 1.51 percent in Copenhagen, after Barclays upgraded it to "Overweight" from "Underweight."
The Eurozone final consumer price inflation remained unchanged from the preliminary estimate in August, data from Eurostat showed on Monday. The euro area annual inflation was 1.3 percent in August 2013, same as the flash estimate and down from 1.6 percent in July.
Germany's manufacturing employment increased in July from a year earlier, data from the Federal Statistical Office showed Monday. The number of employees increased 0.5 percent year-on-year to 5.3 million. The greatest additions were reported by the automobile manufacturing industry, data showed.
The average asking price for a house in the United Kingdom was down 1.5 percent on month in September, property tracking website Rightmove said on Monday, worth an estimated 245,495 pounds. That's down from the second straight month following the 1.8 percent contraction in August.
Online real estate portal Rightmove raised its forecast for U.K. house prices on Monday as demand continued to outstrip supply, amid concerns that a new government scheme to boost the housing market will fuel a property bubble.
The agency expects house prices in the country to rise 6 percent this year, much faster than the 4 percent increase forecast earlier.
Activity in the New York manufacturing sector unexpectedly expanded at a slower pace in the month of September, according to a report released by the Federal Reserve Bank of New York on Monday. The New York Fed said its general business conditions index edged down to 6.3 in September from 8.2 in August but remains in positive territory.
While a positive reading indicates continued growth in New York manufacturing activity, economists had expected the index to climb to 9.0.
With a drop in utilities output partly offsetting a rebound in manufacturing, the Federal Reserve released a report on Monday showing that U.S. industrial production rose by slightly less than expected in the month of August.
The Fed said industrial production increased by 0.4 percent in August after coming in unchanged in July. Economists had expected production to rise by about 0.5 percent.
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