* FTSEurofirst 300 up 1.3 pct, Euro STOXX 50 up 1.5 pct
* Fed chair's comments on job market, stimulus cuts reassure
* L'Oreal sinks as stake buyback impact disappoints
By Blaise Robinson
PARIS, Feb 11 European stocks rose on Tuesday,
boosted by positive corporate results and as new Federal Reserve
Chair Janet Yellen emphasized there would be continuity in the
U.S. central bank's strategy.
In her first public comments as Fed chief, Yellen said the
Fed was on track to keep trimming stimulus but acknowledged the
labour market recovery was "far from complete." She made clear
there would be no abrupt changes to monetary policy.
"Yellen is in line with (previous Fed chair Ben) Bernanke's
approach. It brings visibility on the Fed's action, we now know
where they are going. This is quite reassuring for investors,"
said David Thebault, head of quantitative sales trading at
"The lights are turning 'green' again, and investors are
coming back to equities."
The U.S. central bank has trimmed its asset purchases twice
since December, encouraged by momentum in the economy in late
2013. But after mixed macro data including Friday's
lower-than-expected payrolls and turmoil in emerging markets,
investors had been seeking clarification from the Fed.
Market players also saw a potential headwind removed on
Tuesday when U.S. Republican leaders caved in to demands from
President Barack Obama and agreed to advance legislation raising
Washington's borrowing authority.
The FTSEurofirst 300 index of top European shares
ended 1.3 percent higher at 1,317.30 points, while the euro
zone's blue-chip Euro STOXX 50 index added 1.5
percent at 3,077.08 points.
Shares in car makers Volkswagen and BMW
gained 2.6 and 2.9 percent respectively after positive
January sales figures, while French media group Lagardere
surged 5.3 percent after raising its profit forecast
for fiscal 2013.
"So far in the earnings season, operational results have
been good, which shows that business models are solid. However,
net results have suffered from currency swings," State Street
global Advisors fund manager Olivier Ekambi said.
Shares in European companies with a big exposure to emerging
markets have been hammered recently, hurt by fears that sharp
moves in local currencies could have a negative impact on their
UK lender Barclays dropped 3.8 percent after saying
it would axe up to 12,000 jobs this year even as it raised
bonuses for investment bankers. That prompted fury among
politicians and unions who said it had not learned the lessons
of the financial crisis.
Shares in L'Oreal fell 3.2 percent after initially
rising, on disappointment about the level of earnings boost from
the group's plan to buy back 8 percent of its own shares from
Europe bourses in 2014:
Asset performance in 2014:
Today's European research round-up