With indications of reduction in the number of interest rate hikes expected for this year, European shares rose on Thursday. The development from Fed buoyed world stock markets.
Top mining and energy shares were among the best performers, as the Fed’s latest update weakened the U.S. dollar on currency markets, thereby making commodities less expensive for consumers paying with other currencies.
The pan-European FTSEurofirst 300 index rose 0.4 per cent. Britain’s FTSE climbed 0.7 per cent, while Germany’s DAX advanced 0.6 per cent.
The indicated that moderate U.S. economic growth and “strong job gains” would allow it to tighten policy this year as it held interest rates steady on Wednesday, with fresh projections indicating that policymakers expected two quarter-point hikes by the year’s end, which is half the number in December.
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