Investing.com - European stocks opened higher on Wednesday, after the Bank of Japan announced new monetary policy measures and as investors awaited the Federal Reserve’s policy decision due later in the day.
During European morning trade, the EURO STOXX 50 jumped 1.13%, France’s CAC 40 gained 1.21%, while Germany’s DAX 30 rallied 1.03%.
Earlier Wednesday, the BoJ said it was abandoning its target to increase the monetary base and instead adopted "yield curve control" under which it will buy long-term government bonds to keep 10-year bond yields at current levels around 0%.
The central bank also said it would continue to buy long-term government bonds at a pace that ensures its holdings increase by ¥80 trillion per year.
In addition, the BoJ left interest rates unchanged at minus 0.1%.
Financial stocks were sharply higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) surged 3.35% and 3.51%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) rallied 1.50% and 1.97%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) jumped 2.93% and 3.93% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) soared 3.03% and 3.38%.
Thyssenkrupp AG (DE:TKAG) added to gains, with shares rallying 1.32% amid reports Tata Steel is in talks with the company about potentially merging their European operations.
Volkswagen (DE:VOWG_p) climbed 0.99% after the German carmaker reportedly modified a Beetle to achieve a top speed of more than 205mph, officially making it the fastest Beetle ever.
In London, FTSE 100 advanced 0.59%, as U.K. lenders tracked their European counterparts higher.
Shares in the Royal Bank of Scotland (LON:RBS) jumped 1.06% and HSBC Holdings (LON:HSBA) rallied 1.46%, while Lloyds Banking (LON:LLOY) and Barclays (LON:BARC) surged 2.59% and 3.92% respectively.
Mining stocks were also on the upside, as BHP Billiton (LON:BLT) climbed 0.73% and Anglo American (LON:AAL) advanced 1.69%, while rival Rio Tinto (LON:RIO) gained 1.76%.
Meanwhile, shares in National Grid (LON:NG) dropped 0.61% following reports the state-owned operator China Gas has joined investment firm Fosun to put together a bid for a majority stake in the the U.K. company’s gas distribution network.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.44% gain, S&P 500 futures showed a 0.45% increase, while the Nasdaq 100 futures indicated a 0.51% climb.