European Stocks Higher; Dovish Fed Minutes Help Sentiment

European stock markets

European Stocks Higher; Dovish Fed Minutes Help Sentiment

European stock markets traded higher Thursday, helped by expectations of a global economic recovery after the Federal Reserve reaffirmed its commitment to an ultra-easy monetary policy.

At 4:20 AM ET (0920 GMT), the DAX in Germany traded 0.2% higher, the CAC 40 in France rose 0.5% and the U.K.’s FTSE 100 gained 0.3%, climbing to a 52-week high.

The central bank saw the U.S. economy, the world’s largest, recovering quickly, but indicated there was much more progress needed before low interest rates and the pace of asset purchases were changed.

AstraZeneca stock rose 1.1% after updates from the U.K. and European medical regulators turned out less negative than feared for its Covid-19 vaccine. Both regulators restated that the benefits of taking the vaccines outweigh the risks, although both acknowledged a possible link to blood clotting disorders. U.K. medical data indicate 19 deaths from such clots. The U.K. has administered over 20 million shots of AstraZeneca’s vaccine.

Continental Europe is still struggling with a third wave of Covid-19 cases, with authorities in several Spanish regions tightening mobility restrictions on Wednesday to rein in a rising infection rate.

In corporate news, Bang & Olufsen stock soared over 8% after the Danish luxury TV and stereo maker maintained its full-year guidance after posting double-digit sales growth for a third quarter in a row, helped by greater demand for home entertainment during the pandemic.

The pan-European Stoxx 50 climbed up by 0.25% to 3,966.05. In the cash markets, the DAX futures Germany was trading up 0.08%  to 15,190.17. CAC 40 futures in France rose by 0.41% to 6156.96 while the FTSE 100 futures in the U.K. rose by 0.28% to 6,902.12 ,at the time of writing.

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