European shares dip, dollar gains after Yellen comments

Mon May 25, 2015 5:42am EDT
 
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By Lisa Twaronite

TOKYO (Reuters) - European shares fell in thin trade on Monday while the dollar held firm after U.S. Federal Reserve Chair Janet Yellen indicated that the central bank was poised to raise interest rates this year.

U.S. shares fell on Friday after Yellen suggested the Fed was ready to act if the economy kept improving as expected, though a raft of recent data has suggested it is growing only modestly in the second quarter. She said delaying a policy tightening until employment and inflation hit its targets risked overheating the economy. (Full Story)

A warning on Sunday by Greece's interior minister that the country will not be able to meet a June 5 repayment to the International Monetary Fund, and political concerns in Spain after the ruling People's Party took a battering in regional and local elections, also weighed on European shares. (Full Story)

The benchmark French CAC 40 .FCHI index fell 0.7 percent by 0940 GMT. Trading volumes were thin as several markets including Germany, the United Kingdom and the United States were shut for holidays.

  Continued...

 
Traders work at their screens at the stock exchange in Frankfurt January 23, 2015. European shares rose in early trade on Friday, gaining ground for the seventh consecutive session, as investors cheered the European Central Bank's decision to buy government bonds. REUTERS/Pawel Kopczynski