Investing.com - European stocks were sharply higher on Thursday, after the Federal Reserve said it expected to start raising interest rates next year, while the Swiss National Bank announced that it will impose negative interest rates on commercial bank deposits.
During European morning trade, the EURO STOXX 50 rallied 1.61%, France’s CAC 40 advanced 1.49%, while Germany’s DAX 30 jumped 1.51%.
On Wednesday, the Fed said it would be "patient" before raising rates, guidance which it said is consistent with earlier assurances statement that rates would stay low "for a considerable time."
The central bank acknowledged the improvement in the U.S. labor market and noted that the economy is making progress toward its goals in inflation and employment.
At the bank’s post policy meeting press conference Fed Chair Janet Yellen said the Fed was unlikely to raise rates for the "next couple of meetings" indicating that a move in April at the earliest is possible.
Earlier Thursday, the SNB introduced a negative exchange rate of -0.25% on sight deposit account balances and reiterated its commitment to maintaining the minimum exchange rate of CHF 1.20 per euro.
Financial stocks were sharply higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) rallied 1.83% and 2.63%, while Germany's Commerzbank (XETRA:CBKG) and Deutsche Bank (XETRA:DBKGn) afvanced 0.56% amd 1.94%.
Among peripheral lenders, Italy's Unicredit and Intesa Sanpaolo surged 1.76% and 2.24% respectively, while Spanish banks BBVA and Banco Santander climbed 1.22% and 1.27%.
Elsewhere, Switzerland's Novartis (SIX:NOVN) and Roche Holding (SIX:ROG) advanced 1.63% and 1.33% respectively, following the SNB announcement.
In London, FTSE 100 climbed 0.57%, let by ARM Holdings whose "outperform" rating was reaffirmed by BNP Paribas.
Mining stocks added to gains on the commodity-heavy index. Shares in Glencore Xstrata Plc (LONDON:GLEN) advanced 0.85% and Fresnillo Plc (LONDON:FRES) jumped 2.26%, while Randgold Resources surged 3.17%.
Meanwhile, financial stocks were also mostly higher as HSBC Holdings (LONDON:HSBA) edged up 0.11% and Barclays rose 0.36%, while the Royal Bank of Scotland (LONDON:RBS) rallied 1.12%. Lloyds Banking (LONDON:LLOY) underperformed however, sliding 0.37%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.43% rise, S&P 500 futures signaled a 0.41% gain, while the Nasdaq 100 futures indicated a 0.47% increase.
Later in the day, the Ifo Institute was to release a report on German business climate, while the U.S. was to release data on initial jobless claims and manufacturing activity in the Philadelphia region.