European stocks love falling Fed rate hike prospects

Fed chief Janet Yellen’s dovish talk yesterday and the resulting drop in the Fed rate hike bets is being cheered across European equity bourses.

At the time of writing, Stoxx 50 index was up 1.3%. Germany’s DAX, France’s CAC and UK’s FTSE were all up at least 1.3%.

Oil strength in Europe is helping mining stocks rally. London listed Anglo American and Glencore were up 10% and 6.2% respectively. Norway’s Subsea 7 was up 4.4% as well.

The risk-on action comes after Federal Reserve chair Janet Yellen’s speech, which indicated markets the central bank is proceeding cautiously amid weaker-than-expected global growth and gloomy US outlook.

USD/CHF sold into USD weakness, lowest since Oct 2015

The USD/CHF pair extends losses for the third straight session on Wednesday and drops to the lowest levels since Oct 2015, as the USD bears extend their control on Yellen.
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