Janet Yellen drives shares higher

Sterling climbed for the first time in four days against the dollar yesterday as the dollar weakened after US Federal Reserve chair Janet Yellen’s comments on low inflation were interpreted as dovish.

At one stage, the S&P 500 Index advanced within 11 points of an all-time high. US property and energy shares led gains. The Russell 2000 Index added 0.9% and headed for an all-time closing high. The Stoxx Europe 600 Index added 1.5%, led by builders and energy companies. The FTSE 100 rose 1.2%

Sterling whipsawed yesterday, falling early on after Bank of England deputy governor Ben Broadbent said he isn’t ready to support an increase in interest rates, and then paring those losses as UK labour figures showed earnings increased more than expected.