Investing.com - European stocks opened higher on Thursday, after the Federal Reserve announced a lower than expected number of rate hikes this year and as investors eyed the Bank of England’s policy statement due later in the day.
During European morning trade, the EURO STOXX 50 advanced 0.64%, France’s CAC 40 climbed 0.67%, while Germany’s DAX 30 rose 0.39%.
Global equities were boosted after the Fed left its monetary policy unchanged on Wednesday and said that it is likely to raise interest rates twice this year – and not four times, as initially estimated.
Fed policymakers said the U.S. economy faces risks from an uncertain global economy, although moderate growth and "strong job gains" would allow it to tighten policy this year.
Financial stocks were mixed, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) added 0.02% and 0.41%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) slid 0.18% and 0.42%.
Earlier Thursday, Deutsche Bank’s co-Chief Executive Officer John Cryan said he doesn’t expect the German lender to report a profit this year.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) retreated 0.46% and 0.41% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) surged 1.82% and 2.11%.
Elsewhere, Deutsche Lufthansa (DE:LHAG) AG plummeted 4.50% after reporting a 55% increase in 2015 operating profit and saying that earnings this year will rise only “slightly”.
In London, commodity-heavy FTSE 100 advanced 0.49%, boosted by gains in the mining and energy sectors as oil prices continued to move higher.
Shares in Fresnillo (LON:FRES) and Antofagasta (LON:ANTO) jumped 4.92% and 5.16% respectively, while Rio Tinto (LON:RIO) climbed 5.38% and Glencore (LON:GLEN) soared 8.39%.
Oil and gas major BP (LON:BP) added to gains, with shares surging 2.17%, while rival company Royal Dutch Shell (LON:RDSa) rallied 1.85%.
Meanwhile, financial stocks were mostly lower. Barclays (LON:BARC) dropped 0.66% and the Royal Bank of Scotland (LON:RBS) lost 0.68%, while HSBC Holdings (LON:HSBA) tumbled 1.20%. Lloyds Banking (LON:LLOY) overperformed, with shares edging up 0.09%.
In other news, GlaxoSmithKline Plc Chief Executive Officer Andrew Witty announced plans to step down in 2017 after almost a decade at the helm of the pharmaceutical company, sending shares down 0.27%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.36% gain, S&P 500 futures a 0.39% increase, while the Nasdaq 100 futures indicated a 0.41% climb.