Investing.com - European stocks were higher on Thursday, following news U.S. interest rates will most likely remain on hold for a prolonged period of time.
During European morning trade, the EURO STOXX 50 gained 0.33%, France’s CAC 40 added 0.26%, while Germany’s DAX 30 rose 0.29%.
Equity markets strengthened after the Fed indicated on Wednesday that U.S. economic growth has moderated and that interest rates will rise at a slower pace than previously forecast.
In a statement following its monetary policy meeting, the U.S. central bank also downgraded its forecasts for growth and inflation.
The Fed dropped a reference to being "patient" on the timing of rate hikes, but added that the change in its forward guidance did not mean it has decided on the timing for an initial rate increase.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) gained 0.54% and 0.70%, while Germany's Deutsche Bank (XETRA:DBKGn) advanced 0.63%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) climbed 0.53% and 1.07% respectively, while Spanish banks Banco Santander (MADRID:SAN) and BBVA (MADRID:BBVA) edged up 0.03% and 0.12%.
HeidelbergCement AG (XETRA:HEIG) added to gains, with shares up 2.40% after the German cementmaker said it cut debt more than analysts expected.
Meanwhile, Airbus Group (PARIS:AIR) tumbled 1.26% even as the company said it expects to see growing demand for military aircraft in Asia amid growing tensions in the South China Sea.
In London, commodity-heavy FTSE 100 advanced 0.51%, boosted by sharp gains in the mining sector.
Mining giant Glencore Xstrata (LONDON:GLEN) saw shares jump 2.30% and Bhp Billiton (LONDON:BLT) rallied 2.43%, while rivals Antofagasta (LONDON:ANTO) and Fresnillo (LONDON:FRES) surged 2.53% and 4.27% respectively.
In the financial sector, stocks were mixed. Shares in Lloyds Banking (LONDON:LLOY) dipped 0.01% and HSBC Holdings (LONDON:HSBA) declined 0.40%, while the Royal Bank of Scotland (LONDON:RBS) rose 0.37% and Barclays (LONDON:BARC) gained 0.68%.
Elsewhere, clothing retailer Next Plc (LONDON:NXT) led losses on the index, with shares plummeting 3.38% after the company reported that its fiscal 2014 pre-tax profit increased to £794.8 million from last year's £695.2 million.
In the U.S., equity markets pointed to a mixed open. The Dow Jones Industrial Average futures pointed to a 0.08% loss, S&P 500 futures signaled a 0.09% fall, while the Nasdaq 100 futures indicated a 0.02% uptick.
Later in the day, the U.S. was to release reports on jobless claims, the current account and manufacturing activity in the Philadelphia region.