BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - French stocks advanced on Wednesday after data showed growth of the euro zone private sector economy improved during April.
Sentiment was also underpinned after U.S. Treasury Secretary Janet Yellen downplayed earlier comments that rate hikes may be needed to stop the economy overheating.
'It may be that interest rates will have to rise somewhat to make sure that our economy doesn't overheat, even though the additional spending is relatively small relative to the size of the economy,' Yellen said in taped remarks to a virtual event put on by The Atlantic.
Later on Tuesday, she clarified that she wasn't trying to predict interest rate hikes to rein in inflation pressure and that any price increases would be transitory.
The benchmark CAC 40 jumped 63 points, or 1 percent, to 6,313 after declining 0.9 percent the previous day.
Banks BNP Paribas, Credit Agricole and Societe Generale rallied 1-3 percent while automaker Renault was modestly higher.
Resource management firm Veolia Environnement fell about 1 percent, giving up initial gains. The company said it is ahead of 2021 objectives and plans to recover the pre-crisis dividend policy in 2021.
Copyright RTT News/dpa-AFX