LONDON —
European stocks rose sharply on Thursday as global markets responded to the Federal Reserve’s recent view of the US economy. The pan-European Stoxx 600 gained 0.3% in the first trade, with autos exceeding 2.3% earning gains while resources adjusted the upward trend of spending 0.5%.
European markets are following positive global sentiments following comments from the Fed, which hosted a two-day conference on Wednesday. U.S. stock futures rose sharply on Wednesday night, after the Fed said it currently did not expect to raise interest rates by 2023. Fed Chairman Jerome Powell reiterated that the central bank wants to see a stable inflation of more than 2% target, and to improve conditions in the U.S. labor market, before looking at changes in inflation or monthly bond purchases.
The Fed also said it expects to see gross domestic product grow by 6.5% by 2021, before cooling over previous years and inflation to rise by 2.2% this year, as measured by personal spending.European markets are following positive global sentiments following comments from the Fed, which hosted a two-day conference on Wednesday. U.S. stock futures rose sharply on Wednesday night, after the Fed said it currently did not expect to raise interest rates by 2023.
Fed Chairman Jerome Powell reiterated that the central bank wants to see a stable inflation of more than 2% target, and to improve conditions in the U.S. labor market, before looking at changes in inflation or monthly bond purchases. The Fed also said it expects to see gross domestic product grow by 6.5% by 2021, before cooling over previous years and inflation to rise by 2.2% this year, as measured by personal spending.European markets are following positive global sentiments following comments from the Fed, which hosted a two-day conference on Wednesday. U.S.
stock futures rose sharply on Wednesday night, after the Fed said it currently did not expect to raise interest rates by 2023.Fed Chairman Jerome Powell reiterated that the central bank wants to see a stable inflation of more than 2% target, and to improve conditions in the U.S. labor market, before looking at changes in inflation or monthly bond purchases. The Fed also said it expects to see gross domestic product grow by 6.5% by 2021, before cooling over previous years and inflation to rise by 2.2% this year, as measured by personal spending. In Europe, the Bank of England met on Thursday despite unexpected policy changes.
Meanwhile, European markets will be awaiting the completion of a European Medicines Agency (EMA) safety review of the coronavirus vaccine developed by AstraZeneca and the University of Oxford. Its security committee meets on Thursday. The move comes after a number of countries have banned the use of the vaccine due to blood problems, although the World Health Organization and the EMA have said there is currently no evidence of a link between the gun and a small number of reports on blood clots. Salary on Thursday morning came from General, Hugo Boss, Rolls-Royce, WPP, Morrisons and John Lewis Partnership. German medical company Sartorius saw its shares exceed 11% in initial trading after raising its earnings in 2021, while Sartorius Stedim Biotech earned 6.3%. Volkswagen shares added another 6% to its initial contracts, following a week-long trend of more than a decade, after JPMorgan improved its stock price. Manufacturer of Porsche and parts of Varta has also risen by more than 5%. Below the European blue chip index, Swiss online pharmacist Zur Rose Group fell 8% after its annual earnings report.
