By RTT News, September 16, 2013, 06:28:00 AM EDT
(RTTNews.com) - European stocks rose notably to hit five-year highs on Monday after Lawrence Summers, the former Treasury secretary and senior White House economic adviser, has withdrawn from consideration to succeed Ben Bernanke as Federal Reserve chairman, paving the way for Federal Reserve Chairwoman Janet Yellen, who is perceived by markets as more dovish.
A deal reached between U.S. and Russian negotiators over the weekend on disarming Syria's chemical stockpile also helped support risk sentiment.
The Asian markets rose broadly and trading in the U.S. index futures point to a sharply higher open on optimism the Fed will go slow on tapering.
The Euro Stoxx 50 index of eurozone bluechip stocks is up 0.85 percent and the Stoxx Europe 50 index, which includes some major U.K. companies, is up 0.6 percent. Around Europe, the German DAX is rising 1.2 percent, France's CAC 40 is moving up 0.9 percent and the U.K.'s FTSE 100 is gaining 0.6 percent.
Deutsche Lufthansa AG is gaining 1.2 percent in Frankfurt. 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 is up 0.8 percent on reports the company is considering increasing its stake in its Chinese joint venture to 50 percent from 40 percent.
Anglo American Plc. is adding a percent in London. 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.
Roche Holding is gaining 0.7 percent in Zurich after the Swiss pharma giant nominated Christoph Franz, chief executive of German aviation group Deutsche Lufthansa, to replace Franz Humer as its new chairman of the board.
In economic releases, the Eurozone final consumer price inflation remained unchanged from the preliminary estimate in August, data from Eurostat showed. The euro-area annual inflation stood at 1.3 percent in August, same as the flash estimate and down from 1.6 percent in July.
For comments and feedback: contact firstname.lastname@example.org