By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stocks edged higher on Friday
after the woman nominated to lead the Federal Reserve vigorously
supported the U.S. central bank's bond-buying program.
The Stoxx Europe 600 index rose 0.2% to 322.97, putting it on
track for a sixth straight week of gains.
Shares of Vivendi SA gained 3.5% after the media and telecom
firm reported late Thursday third-quarter results ahead of analyst
expectations and confirmed its year-end guidance for all units.
Shares of Serco Group PLC added 1.5% after UBS lifted the
outsourcing company to buy from neutral. On Thursday, the shares
plunged 17% after the firm warned that adjusted operating profit
for 2013 will be below market expectations.
The broader moves mirrored a global stock market rally on
Thursday, which followed Janet Yellen's confirmation hearing at the
Senate Banking Committee. The nominee to head the Fed defended the
central bank's aggressive bond-buying program and tried to ease
concerns that bubbles are forming in the equity markets. Investors
welcomed her remarks, sending both the S&P 500 index (SPX) and
Dow Jones Industrial Average (DJI) to record closes.
U.S. stock futures pointed to a slightly higher open on Wall
Street on Friday.
Later in the day, attention turns to the Empire State Index and
industrial-production data in the U.S., which could strengthen or
weaken the case for the Fed to scale back its asset purchases.
In Europe, the final reading for euro-zone consumer prices for
October confirmed that the annual rate of inflation in the currency
union was 0.7% in October, the lowest level since November
2009.
Fears of deflation were seen as partly behind the European
Central Bank's decision to cut rates at its November meeting, which
came after preliminary numbers showed inflation in October fell to
its lowest level in almost four years.
Mark McFarland, global chief economist at Coutts, said inflation
in the region will remain below the 2% target for some time and the
ECB "needs to become more creative."
"We maintain our overweight position in European equities on the
basis of valuation and policy response. We also prefer peripheral
corporate and sovereign bonds over core countries' bonds," he wrote
in emailed comments.
France's CAC 40 index added 0.2% to 4,292.87, while Germany's
DAX 30 index rose 0.3% to 9,173.20.
The U.K.'s FTSE 100 index gained 0.5% to 6,695.99.
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