Warsh's Inflation Warning Fuels Bets for Higher US Interest Rates

Stocks rose across Europe and the US after Federal Reserve Chairman Kevin Warsh warned of inflationary pressures, fueling bets for higher interest rates in the US.

The FTSE 100 index closed up 31.72 points, or 0.3%, at 10,824.26, while the Cac 40 in Paris and Dax 40 in Frankfurt also ended higher.

Warsh's comments sent short-term Treasury yields higher, with the two-year Treasury yield rising to 4.30% from around 4.23% beforehand.

The rise in stocks was led by energy companies, with Brent oil falling to $88.06 a barrel.