Investing.com - European stocks rose on Thursday, as global equity markets found support after the Federal Reserve said interest rates would remain low for some time.
During European morning trade, the DJ Euro Stoxx 50 advanced 0.87%, France’s CAC 40 climbed 0.70%, while Germany’s DAX gained 0.75%.
At the conclusion of its two-day meeting on Wednesday, the Fed cut its bond purchases by another $10 billion a month, to $35 billion, saying there was "sufficient underlying strength" in the U.S. economy to continue tapering.
Despite this, the Fed also lowered its forecast for growth this year to a range of 2.1% to 2.3% from 2.8 to 3.0% previously, due to "unexpected contractions" in the first quarter as a result of the unusually harsh winter. The central bank still acknowledged a broad improvement in the labor market.
The Fed said it expects the federal-funds rate, currently close to zero, to reach 1.2% by the end of next year and 2.5% by the end of 2016, a slightly faster rate of tightening than formerly expected.
Financial stocks were broadly higher, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) advanced 0.74% and 0.69%, while Germany''s Deutsche Bank (XETRA:DBKGn) rose 0.21%.
Among peripheral lenders, Italy''s Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) jumped 1.08% and 1.31% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) rallied 1.06% and 1.23%.
Elsewhere, L''Oreal (PARIS:OREP) saw shares climb 0.71% after the company on Wednesday agreed to acquire Los Angeles-based NYX Cosmetics for an undisclosed price to boost its makeup offerings in North America.
In London, FTSE 100 gained 0.70%, led by Rolls-Royce (LONDON:RR), up 6.19%, after the luxury carmaker said it will buy back £1 billion worth of company stock after agreeing to sell energy assets to Siemens.
Mining stocks added to gains, as Glencore Xstrata (LONDON:GLEN) jumped 1.03% and Rio Tinto (LONDON:RIO) rallied 1.31%, while rivals Vedanta Resources (LONDON:VED) and Bhp Billiton (LONDON:BLT) surged 1.52% and 1.83% respectively.
In the financial sector, stocks were also broadly higher. Shares in HSBC Holdings (LONDON:HSBA) rose 0.35% and the Royal Bank of Scotland (LONDON:RBS) gained 0.37%, while Lloyds Banking (LONDON:LLOY) advanced 0.42% and Barclays (LONDON:BARC) climbed 1.02%.
In the U.S., equity markets pointed to a steady open. The Dow 30 futures
pointed to a 0.01% dip, S&P 500 futures
signaled a 0.01% downtick, while the Nasdaq 100 futures
indicated a 0.06% gain.
Later in the day, the U.S. was to publish the weekly report on initial jobless claims as well as a report on manufacturing activity in the Philadelphia region.