German stocks advanced on Friday after U.S. Treasury Secretary Janet Yellen told CNBC that she expects prices ultimately will fall back to more normal levels after “several more months of rapid inflation.”
She cited market-based inflation measures as proof that longer-term expectations remain in check.
Fed Chair Jerome Powell also reiterated expectations for inflation pressures to fade in a hearing before the Senate Banking Committee on Thursday.
The benchmark DAX rose 50 points, or 0.3 percent, to 15,680 after falling around 1 percent the previous day.
Travel and leisure stocks gained ground, with airline Lufthansa climbing nearly 2 percent after U.S. President Joe Biden said the United States is reviewing when it can lift the COVID-related travel ban for European citizens.
Sportswear company Puma lost 2 percent despite posting strong sales and lifting FY21 outlook.
Automakers were broadly higher, with Volkswagen climbing 1.4 percent after industry data showed Europe’s passenger car registrations increased at a moderate pace in June.
Car registrations increased 10.4 percent year-on-year in June, but slower than the 53.4 percent growth posted in May, the European Automobile Manufacturer’s Association said.
Among the major EU car markets, Germany posted the biggest gain with a 24.5 percent increase.
DAX Edges Higher As Inflation Concerns Ease
2021-07-16 09:10:33
