Investing.com - European stocks remained sharply higher on Thursday, as global markets remained supported by the Federal Reserve's decision to hold low interest rates and begin to taper its stimulus program as soon as next month.
During European afternoon trade, the EURO STOXX 50 surged 1.47%, France’s CAC 40 gained 1.15%, while Germany’s DAX 30 jumped 1.32%.
The Fed announced Wednesday that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January. In his last press conference as Fed Chairman Ben Bernanke said the economy was continuing to make progress.
The U.S. central bank reiterated that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.
In the euro zone, data showed that the current account recorded a seasonally adjusted surplus of EUR21.8 billion in October, widening from a surplus of EUR14.9 billion in September, whose figure was revised up from a previously reported surplus of EUR13.7 billion.
Economists had expected the region’s current account surplus to narrow to EUR14.2 billion in October.
Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale rallied 1.30% and 1.78%, although Germany's Deutsche Bank surged 1.90%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA advanced 2.28% and 2.78% respectively, while Italy's Unicredit and Intesa Sanpaolo jumped 1.66% and 2.29%.
Elsewhere, Saab shares skyrocketed 24.81% after the carmaker got a USD4.5 billion contract from Brazil.
Algeta was also higher, up 1.62%, after Bayer said it will buy the drugmaker for about USD2.9 billion, topping a preliminary offer.
In London, FTSE 100 advanced 1.03%, as U.K. lenders continued to their European counterparts higher.
Shares in the Royal Bank of Scotland climbed 1.92% and Lloyds Banking rallied 1.65%, while Barclays surged 2.15%. HSBC Holdings underperformed however, down 0.62%.
Meanwhile, mining stocks turned broadly lower as commodity prices dropped due to a stronger dollar. Glencore Xstrata retreated 0.84% and Fresnillo plummeted 1.99%, while Randgold Resources lost 2.80%.
However, Astrazeneca climbed 1.56% after agreeing to pay USD4.3 billion to buy Bristol-Myers Squibb's share of the companies’ joint venture to make diabetes drugs.
In the U.S., equity markets pointed to a moderately lower open. The Dow Jones Industrial Average futures pointed to a 0.05% dip, S&P 500 futures signaled a 0.09% loss, while the Nasdaq 100 futures indicated a 0.12% fall.
Later in the day, the U.S. was to publish data on existing home sales, manufacturing activity in the Philadelphia region and initial jobless claims.
During European afternoon trade, the EURO STOXX 50 surged 1.47%, France’s CAC 40 gained 1.15%, while Germany’s DAX 30 jumped 1.32%.
The Fed announced Wednesday that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January. In his last press conference as Fed Chairman Ben Bernanke said the economy was continuing to make progress.
The U.S. central bank reiterated that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.
In the euro zone, data showed that the current account recorded a seasonally adjusted surplus of EUR21.8 billion in October, widening from a surplus of EUR14.9 billion in September, whose figure was revised up from a previously reported surplus of EUR13.7 billion.
Economists had expected the region’s current account surplus to narrow to EUR14.2 billion in October.
Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale rallied 1.30% and 1.78%, although Germany's Deutsche Bank surged 1.90%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA advanced 2.28% and 2.78% respectively, while Italy's Unicredit and Intesa Sanpaolo jumped 1.66% and 2.29%.
Elsewhere, Saab shares skyrocketed 24.81% after the carmaker got a USD4.5 billion contract from Brazil.
Algeta was also higher, up 1.62%, after Bayer said it will buy the drugmaker for about USD2.9 billion, topping a preliminary offer.
In London, FTSE 100 advanced 1.03%, as U.K. lenders continued to their European counterparts higher.
Shares in the Royal Bank of Scotland climbed 1.92% and Lloyds Banking rallied 1.65%, while Barclays surged 2.15%. HSBC Holdings underperformed however, down 0.62%.
Meanwhile, mining stocks turned broadly lower as commodity prices dropped due to a stronger dollar. Glencore Xstrata retreated 0.84% and Fresnillo plummeted 1.99%, while Randgold Resources lost 2.80%.
However, Astrazeneca climbed 1.56% after agreeing to pay USD4.3 billion to buy Bristol-Myers Squibb's share of the companies’ joint venture to make diabetes drugs.
In the U.S., equity markets pointed to a moderately lower open. The Dow Jones Industrial Average futures pointed to a 0.05% dip, S&P 500 futures signaled a 0.09% loss, while the Nasdaq 100 futures indicated a 0.12% fall.
Later in the day, the U.S. was to publish data on existing home sales, manufacturing activity in the Philadelphia region and initial jobless claims.