LONDON – European equities rose slightly on Thursday, with markets around the world reacting to the Federal Reserve’s latest outlook on the US economy.
The pan-European Stoxx 600 gained 0.2% with banks jumping 1.5%, while concessionaires fell 0.7%. Germany’s DAX performed well in the region and hit a record high early on Thursday.
European markets are mainly following positive global sentiment after comments from the Fed, which concluded a two-day meeting on Wednesday. U.S. stock futures rose in the Wednesday night session, after the Fed said it does not expect to raise interest rates until 2023.
Fed Chairman Jerome Powell reiterated that the central bank wants to see inflation consistently above its 2% target and a significant improvement in the US labor market, before considering changes in rates or monthly bond purchases.
The Fed also said it expects to see gross domestic product grow 6.5% in 2021, before cooling off in later years and inflation rising 2.2% this year, as measured by personal consumption spending.
In Europe, the Bank of England will meet on Thursday, although no policy changes are expected. Meanwhile, European markets await the completion of the safety review by the European Medicines Agency (EMA) for the coronavirus vaccine developed by AstraZeneca and the University of Oxford. Your security committee will meet Thursday.
German auto parts maker Varta rose 5.5%, while the country’s largest lenders, Deutsche Bank and Commerzbank, both rose more than 4%.
At the bottom of the European blue chip index, Swiss online pharmacy Zur Rose Group fell more than 8% after its full-year earnings report.
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