Investing.com - European stocks were sharply higher on Thursday, as global markets reacted to the Federal Reserve's decision to hold low interest rates and begin to taper its stimulus program as soon as next month.
During European morning trade, the EURO STOXX 50 surged 1.89%, France’s CAC 40 gained 1.68%, while Germany’s DAX 30 jumped 1.70%.
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.
Separately, European Union finance ministers agreed on how to deal with failing banks before a summit due to begin later Thursday in Brussels. The deal includes a EUR55 billion industry-financed resolution fund over the next 10 years.
Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale rallied 1.88% and 2.93%, although Germany's Deutsche Bank surged 2.40%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA advanced 2.75% and 2.98% respectively, while Italy's Unicredit and Intesa Sanpaolo jumped 1.66% and 1.79%.
Elsewhere, Saab shares skyrocketed 22.56% after the carmaker got a USD4.5 billion contract from Brazil.
Algeta was also higher, up 1.70%, after Bayer said it will buy the drugmaker for about USD2.9 billion, topping a preliminary offer.
In London, FTSE 100 advanced 1.02%, as U.K. lenders tracked their European counterparts sharply higher.
Shares in the Royal Bank of Scotland climbed 2.06% and Lloyds Banking rallied 2.08%, while Barclays led gains on the index with shares surging 2.80%. HSBC Holdings underperformed however, down 0.51%.
Meanwhile, mining stocks were mixed as Glencore Xstrata rose 0.24% and Vedanta Resources gained 0.94%, while Randgold Resources saw shares plummet 1.54% and Fresnillo lost 1.94%.
Astrazeneca climbed 1.99% 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 0.04% dip, S&P 500 futures signaled a 0.12% fall, while the Nasdaq 100 futures indicated a 0.12% loss.
Later in the day, the euro zone is to release data on the current account. The U.S. was to publish data on existing home sales, manufacturing activity in the Philadelphia region and initial jobless claims.
During European morning trade, the EURO STOXX 50 surged 1.89%, France’s CAC 40 gained 1.68%, while Germany’s DAX 30 jumped 1.70%.
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.
Separately, European Union finance ministers agreed on how to deal with failing banks before a summit due to begin later Thursday in Brussels. The deal includes a EUR55 billion industry-financed resolution fund over the next 10 years.
Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale rallied 1.88% and 2.93%, although Germany's Deutsche Bank surged 2.40%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA advanced 2.75% and 2.98% respectively, while Italy's Unicredit and Intesa Sanpaolo jumped 1.66% and 1.79%.
Elsewhere, Saab shares skyrocketed 22.56% after the carmaker got a USD4.5 billion contract from Brazil.
Algeta was also higher, up 1.70%, after Bayer said it will buy the drugmaker for about USD2.9 billion, topping a preliminary offer.
In London, FTSE 100 advanced 1.02%, as U.K. lenders tracked their European counterparts sharply higher.
Shares in the Royal Bank of Scotland climbed 2.06% and Lloyds Banking rallied 2.08%, while Barclays led gains on the index with shares surging 2.80%. HSBC Holdings underperformed however, down 0.51%.
Meanwhile, mining stocks were mixed as Glencore Xstrata rose 0.24% and Vedanta Resources gained 0.94%, while Randgold Resources saw shares plummet 1.54% and Fresnillo lost 1.94%.
Astrazeneca climbed 1.99% 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 0.04% dip, S&P 500 futures signaled a 0.12% fall, while the Nasdaq 100 futures indicated a 0.12% loss.
Later in the day, the euro zone is to release data on the current account. The U.S. was to publish data on existing home sales, manufacturing activity in the Philadelphia region and initial jobless claims.