Investing.com - European stocks rallied on Thursday, after the Federal Reserve raised interest rates for the first time in nearly a decade, confirming optimism over the strength of the U.S. economy.
During European morning trade, the EURO STOXX 50 jumped 2.19%, France’s CAC 40 advanced 2.23%, while Germany’s DAX 30 surged 2.18%.
At the conclusion of its policy meeting on Wednesday, the Fed raised interest rates by a quarter of a percentage point to between 0.25% and 0.50%. It was the first rate hike in the U.S. since 2006.
Commenting on the decision, Fed Chair Janet Yellen said that further rate hikes would be gradual and data dependent.
Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) surged 2.13% and 2.54%, while Germany's Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) jumped 1.29% and 1.56%.
Among peripheral lenders, Italy's Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) gained 0.49% and 1.56% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) advanced 1.80% and 2.14%.
Elsewhere, Vivendi SA (PA:VIV) rallied 1.46% after the French media company secured board representation on Telecom Italia (MI:TLIT) SpA, winning a key battle to gain greater influence over the struggling telecom operator.
In London, FTSE 100 climbed 1.47%, as U.K. lenders tracked their European counterparts sharply higher.
Shares in Lloyds Banking (L:LLOY) advanced 0.99% and the Royal Bank of Scotland (L:RBS) jumped 1.66%, while Barclays (L:BARC) and HSBC Holdings (L:HSBA) surged 1.83% and 2.04% respectively.
Astrazeneca (L:AZN) added to gains, with shares up 2.04%, after the drugmaker agreed to buy a 55% stake in Acerta Pharma BV for $4 billion.
Meanwhile, mining stocks were steady to lower on the commodity-heavy index. Fresnillo (L:FRES) inched up 0.07% and Randgold Resources (L:RRS) eased 0.07%, while Rio Tinto (L:RIO) edged 0.08% lower and Anglo American (L:AAL) dropped 0.88%.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.06% uptick, S&P 500 futures signaled a 0.01% dip, while the Nasdaq 100 futures indicated a 0.08% gain.