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European shares rally as fed rates remain unchanged

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European shares climbed higher in early trading on Thursday, mirroring gains on Wall Street and Asia, after the U.S. Federal Reserve left interest rates unchanged and projected a less aggressive path for hikes next year and in 2018.

The Fed, however, strongly signalled it could still tighten monetary policy by the end of this year as the labour market improved further. Fed Chair Janet Yellen said U.S. growth was looking stronger and rate increases would be needed to keep the economy from overheating and fuelling high inflation.

Miners led the European stock market higher as the Fed’s decision to keep rates unchanged pushed down the U.S dollar on currency markets, thereby making commodities cheaper for holders of other currencies.

Paul

The author Paul