LONDON – European stock markets moved slightly on Thursday as markets around the world reacted to the Federal Reserve’s latest outlook on the US economy.
The pan-European Stoxx 600 gained 0.2%, with banks growing by 1.5%, while profits lost 0.7%. The German DAX was the outstanding performer in the region and reached a record level at the beginning of Thursday’s activity.
European markets are mostly looking for a positive global sentiment after the Fed’s comments, which ended a two-day meeting on Wednesday. US futures rose higher on Wednesday night, after the Fed said it did not currently expect interest rates to rise until 2023.
Fed Chairman Jerome Powell reiterated that the central bank wants to see inflation steadily above its 2% target and significant improvement in the US labor market, before considering rate changes or monthly bond purchases.
The Fed also said it expects gross domestic product to rise by 6.5% in 2021, before cooling in the coming years and inflation to rise by 2.2% this year, as measured by personal consumption spending.
In Europe, the Bank of England meets on Thursday, although no policy change is expected. Meanwhile, European markets will await the conclusion of the European Medicines Agency (EMA) safety review of the coronavirus vaccine developed by AstraZeneca and Oxford University. Its safety committee meets on Thursday.
German car parts maker Varta rose 5.5%, while the country’s largest creditors, Deutsche Bank and Commerzbank, both added 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 revenue ratio.
Subscribe to CNBC PRO for exclusive statistics and analysis, and live scheduling on weekdays around the world.