A gauge of global equity markets rose on Wednesday after Federal Reserve Chair Jerome Powell said interest rates will remain low, calming market jitters sparked by a jump in U.S. Treasury yields on fears that a robust recovery would drive inflation higher. Sales of new U.S. single-family homes increased more than expected in January as the median sale price rose 5.3% on a year-over-year basis, the latest data to show certain consumer prices are rising faster than expected. Crude oil rose more than 2% to fresh 13-month highs while gold prices struggled for traction as elevated Treasury yields eroded the allure of bullion as an inflation hedge.
German 4th Quarter GDP revisions support the EUR and the DAX. Economic uncertainty caps the market impact, however.
European stock markets traded in a mixed fashion Wednesday, as traders digest stronger-than-expected German economic growth as well a swathe of corporate results. Bullish exports and solid construction activity helped the German economy to grow by a stronger-than-expected 0.3% in the final quarter of last year, a revision higher from an earlier estimate of 0.1% growth. On the flip side, AstraZeneca (NASDAQ:AZN) stock fell 1.4% after Reuters reported that the drugmaker has told the European Union it expects to deliver less than half the Covid-19 vaccines it was contracted to supply in the second quarter.