Investing.com - European stocks moved higher on Thursday, after the Federal Reserve decided to hike interest rates as expected and investors looked ahead to the Bank of England’s monetary policy decision due later in the trading session.
During European morning trade, the EURO STOXX 50 jumped 0.95%, France’s CAC 40 climbed 0.75%, while Germany’s DAX 30 advanced 0.99%.
At the end of its two-day policy meeting on Wednesday, the Fed increased interest rates by 25 basis points to 1.00% from 0.75%, as expected.
However, the central bank’s stance was seen as less hawkish than expected by sticking to projections of three total rate hikes in 2017 and not four as some traders had hoped for.
Separately, the Bank of Japan chose to leave its monetary policy unchanged at the end of its policy meeting on Thursday, underscoring the diverging policy paths of major global central banks.
Also Thursday, exit polls in Holland pointed to a victory for the center-right candidate Mark Rutte and not the anti-immigrant and anti-establishment Freedom Party, easing concerns over a potential Dutch exit from the European Union.
Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) rallied 1.78% and 2.23%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) advanced 0.64% and 1.66%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) jumped 1.04% and 1.81% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) surged 1.66% and 1.75%.
Also on the upside, Deutsche Lufthansa AG (BE:LHABy) shares soared 3.94% after the airline group reported a better-than-expected net profit for 2016.
Meanwhile, shares in Renault SA (PA:RENA) plummeted 4.15% after France's consumer fraud watchdog told prosecutors that CEO Carlos Ghosn should be held responsible for the carmaker's suspected diesel emissions cheating.
In London, commodity-heavy FTSE 100 gained 0.69%, boosted by sharp gains in the mining sector.
Shares in BHP Billiton (LON:BLT) jumped 4.48% and Antofagasta (LON:ANTO) rallied 5.83%, while Fresnillo (LON:FRES) and Anglo American (LON:AAL) soared 5.64% and 7.33% repectively.
In the financial sector, stocks were mixed. Lloyds Banking (LON:LLOY) advanced 0.53% and Barclays (LON:BARC) climbed 0.55%, while HSBC Holdings (LON:HSBA) slipped 0.18% and the Royal Bank of Scotland (LON:RBS) declined 0.38%.
Hikma Pharmaceuticals PLC (LON:HIK) was one of the worst performers on the index, with shares tumbling 1.87% after the drugmaker reported a decline in full year profit, due to a loss in the generic drugs division.
Later Thursday, the BoE was expected to leave its monetary policy unchanged. Market participants were expected to focus on the central bank’s comments following the decision for any clues on future policy moves and its stance on a post-Brexit U.K. economy.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.31% rise, S&P 500 futures showed a 0.25% gain, while the Nasdaq 100 futures indicated a 0.31% increase.