Saturday, 28 May 2016

Stocks, dollar gain as Yellen talks rate hike

US stocks and the dollar climbed on Friday after Federal Reserve Chair Janet Yellen implied that interest rates could be lifted soon.

Ms Yellen's much-anticipated remarks came after European markets had already closed with modest gains. The Nikkei climbed 0.4 per cent on hopes of more stimulus following weak Japanese inflation data.

Ms Yellen, speaking at Harvard University, said a US rate hike "probably" would be justified "in the coming months" if economic data continued to strengthen.

"The economy is continuing to improve," she said. "Growth looks to be picking up." Stocks briefly cut their gains following the remarks, but later recovered, with the S&P 500 finishing up 0.4 per cent.

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