European stocks extend gains after Fed

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Córdoba) - European stocks extended gains into a third consecutive day after the Fed signaled it was in no hurry to raise interest rates.



The Stoxx Europe 600 index rose 0.66% to 348.41. Among country-specific indexes, UK FTSE 100 and Germany's DAX 30 added 0.74% each while France’s CAC 40 climbed 0.76%. Italy’s FTSE MIB was up 0.91% while Spain’s IBEX 35 advanced 0.58%.



In the FX market, the USD weakened following Fed decision, although it remains within recent ranges.



The FOMC announced it will keep federal funds rates at record lows of 0-0.25% and trimmed its bond-buying purchases by $10 billion to $35 billion. The central bank also released a set of projections, which revealed most officials expect the first rate hike in 2015 while a little steeper rise is seen in 2016. The Fed also cut GDP and unemployment rate projections while leaving inflation forecasts nearly unchanged.



As for commodities, gold rose 0.65% to $1280 an ounce, while crude oil was up 0.21% at a $106.19 barrel.



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