European shares surge on good US economy and low interest rate
June 19, 2014 10:31 am
European shares went up on the opening session on Thursday as stimulus from the Federal Reserve Bank decision to maintain the lower interest rate in the midst of a recovering US economy was reached.
The pan-European Euro Stoxxx 600 Index was in positive territory as all of its sector increased. The Rolls Royce share jumped 6% at the sessions open following announcement that the automobile giant was headed to meet its 2014 guidance and it has allowed share buyback.
The FTSE 100 Index gained 0.85% or 57.92 pips to stay at 6,836.48. Germany’s DAX and France’s CAC 40 are up by 0.83% or 81.33 pips and 0.96% or 43.72 pips to stand currently at 10,0011.72 and 4,573.77 respectively. IBEX 35 is increased by 0.97% or 107.40 pips to 11,221.00.
Federal Reserve Bank chair, Janet Yellen, announced the results of the meeting, reiterating the regulation of lower interest rates for a considerable amount of time at the end of the two-day meeting yesterday. She added that $10 billion will be cut in the monthly asset purchases, reducing the $45 billion to $35 billion in the coming month. However, Yellen implied that next year’s rates would have a quicker pace in increase.
Stocks in Wall Street are also in a bullish mood as the surge in US stocks prove that the US economy is indeed recovering. The S&P 500 hit an all-time record high, along with the Dow Jones Industrial Average, and the Nasdaq Composite which also had significant advances today.
The material has been provided by InstaForex Company – www.instaforex.com
European shares went up on the opening session on Thursday as stimulus from the Federal Reserve Bank decision to maintain the lower interest rate in the midst of a recovering US economy was reached.
The pan-European Euro Stoxxx 600 Index was in positive territory as all of its sector increased. The Rolls Royce share jumped 6% at the sessions open following announcement that the automobile giant was headed to meet its 2014 guidance and it has allowed share buyback.
The FTSE 100 Index gained 0.85% or 57.92 pips to stay at 6,836.48. Germany’s DAX and France’s CAC 40 are up by 0.83% or 81.33 pips and 0.96% or 43.72 pips to stand currently at 10,0011.72 and 4,573.77 respectively. IBEX 35 is increased by 0.97% or 107.40 pips to 11,221.00.
Federal Reserve Bank chair, Janet Yellen, announced the results of the meeting, reiterating the regulation of lower interest rates for a considerable amount of time at the end of the two-day meeting yesterday. She added that $10 billion will be cut in the monthly asset purchases, reducing the $45 billion to $35 billion in the coming month. However, Yellen implied that next year’s rates would have a quicker pace in increase.
Stocks in Wall Street are also in a bullish mood as the surge in US stocks prove that the US economy is indeed recovering. The S&P 500 hit an all-time record high, along with the Dow Jones Industrial Average, and the Nasdaq Composite which also had significant advances today.
The material has been provided by InstaForex Company – www.instaforex.com
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