European Shares Rally After Fed Verdict

European stocks rallied on Thursday as a signal by the Federal Reserve that it would raise interest rates in 2022 reduced a source of uncertainty for markets.

The Fed said it would double the speed of the tapering of its bond purchasing program and projected three rate hikes in 2022.

Investors also reacted to the latest PMI survey results from the region and looked ahead to monetary policy announcements from the Bank of England and the European Central Bank for directional cues.

Earlier in the day, the Swiss National Bank maintained its expansionary monetary policy, as widely expected. Policymakers of the central bank decided to retain the policy rate and interest on sight deposits at the SNB at -0.75 percent.

The pan European Stoxx 600 climbed 1.1 percent to 476.12 after gaining 0.3 percent on Wednesday. The German DAX rallied 1.6 percent, France’s CAC 40 index rose about 1 percent and the U.K.’s FTSE 100 was up 0.8 percent.

Swiss Re gained about 1 percent after appointing new digital chief in a management shake-up.

Novartis jumped 4 percent after it launched a new share buyback worth up to $15 billion to be executed by the end of 2023.

Wacker Chemie AG rose 1 percent. The chemical company said, by 2030, it plans to cut its absolute greenhouse gas emissions by 50 percent relative to 2020.

Higher copper prices lifted miners, with Anglo American, Antofagasta and Glencore rising 2-3 percent.

Fund manager Schroders advanced 1.8 percent on news that it is in advanced talks to buy a 75 percent stake in Greencoat Capital.

Online fashion retailer Boohoo plunged as much as 16 percent after warning that expectations for its 2021-22 year will be lower than previously guided.

Valneva shares soared 10 percent. The French biotech company said its Covid-19 vaccine candidate was efficient as a booster for people who had received the same shot as an initial vaccination.

Metro AG tumbled 3 percent after the retailer posted a loss for its fiscal year 2021 and said it doesn’t plan to distribute a dividend for the period.

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