FTSE up 0.66%; DAX up 1.06%; CAC 40 up 0.86% (Il Sole 24 Ore Radiocor) - London, 10 Jul - European shares closed higher, rebounding from yesterday's losses, as investors focused on comments from Federal Reserve head Jerome Powell.

In his first day of testimony before the US Congress yesterday, Powell took a dovish stance, warning of the risk of leaving rates too high for too long and saying that 'reducing policy restraint too late or too little could unduly weaken economic activity and employment.' The Fed chair last week fanned hopes of a rate cut, saying the battle against inflation had made progress and the job market was cooling.

Caution prevailed in the region amid prospects of a hung parliament in France after a surprise win for the country's leftwing coalition, the New Popular Front (Nouveau Front Populaire).

The bloc won the second round of the general election held on Sunday, thwarting an expected surge of the far-right, but failed to secure an absolute majority.

Marine Le Pen's far-right National Rally (Rassemblement National) underwhelmed after scoring historic gains in the first round of the parliamentary election on June 30.

The New Popular Front has pledged big spending increases, sparking concerns over clashes with the EU as the country already struggles with high budget deficit, recently prompting the EU to recommend disciplinary steps.

The French election results come after a general election in the UK last week that saw the opposition Labour Party win a landslide victory as expected, ending 14 years in power for the Conservative Party.

The London FTSE 100 closed up 0.66% at 8,193.51 points, the Frankfurt DAX added 1.06% at 18,417.35 points, the Paris CAC 40 gained 0.86% at 7,573.55 points, while in Milan the FTSE MIB rose 1.31% at 34,306.40 points, and in Madrid the IBEX 35 closed 1.51% higher at 11,062.88 points.

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(RADIOCOR) 10-07-24 18:18:09 (0557) 5 NNNN