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January 26, 2022
BUSINESS

European stocks waver around 5-year high

European stock markets moved firmly higher on Monday after former U.S. Treasury Secretary Lawrence Summers over the weekend pulled out of the race to become next U.S. Federal Reserve Chairman, marketwatch.com reports. The Stoxx Europe 600 index jumped 0.9 per cent to 314.17, building on a 1.8 per cent gain from last week. Among notable movers in the benchmark, shares of Hennes & Mauritz AB climbed 3.5 per cent after the Swedish clothing retailer said same-store sales rose 4 per cent in August.
For the broader European stock markets, investors welcomed news that Summers won’t be running for next Federal Reserve Chairman, saying he has “reluctantly concluded that any possible confirmation process for me would be acrimonious.” The moves potentially paves the way for the Fed’s vice chairwoman Janet Yellen, who is expected to scale back the central bank’s quantitative-easing program less aggressively than Summers would. U.S. stock futures rallied, while Treasury yields moved lower.
On the other hand, former US Treasury Secretary Larry Summers has withdrawn from the race to be the new head of the US central bank, bbc.co.uk informs.  He was among the front-runners to succeed Ben Bernanke as head of the Federal Reserve, one of the most powerful jobs in the US. In a letter to President Obama, Summers said any confirmation process for him was likely to be “acrimonious”. Summers was thought to be the candidate favoured by the president, but he was opposed by other Democrats. Obama said he had accepted Mr Summers’ decision.

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