European Factors to Watch-Shares to rise as Fed keeps stimulus
LONDON, Sept 19
LONDON, Sept 19 (Reuters) - European stocks are set to rise on Thursday, with Germany's DAX seen hitting record highs, after the U.S. Federal Reserve shocked markets by sticking fully to its programme of economic stimulus.
Financial spreadbetters expect Britain's FTSE 100 to open up by 75 to 76 points, or as much as 1.1 percent higher.
Germany's DAX is seen opening up by 107 to 110 points, or as much as 1.3 percent, which would push the DAX to new record highs. France's CAC 40 is seen opening up by 58 points, or 1.4 percent higher.
The Fed said after European markets closed on Wednesday that it would keep buying $85 billion in bonds per month, defying expectations it would start to scale back that programme by at least $5-10 billion.
The Fed's decision to keep the programme - known as "quantitative easing" (QE) - unchanged drove U.S stock markets to record highs.
While many traders still expect the Fed to start to scale back its bond-buying programme soon, some said that any such move could be pushed back further if Janet Yellen is chosen replace Ben Bernanke at the head of the bank.
"Some bulls would argue that with the issue of tapering now looking to be in the hands of uber dove Janet Yellen, any form of tightening is off the table for the foreseeable future," Capital Spreads dealer Jonathan Sudaria wrote in a note.
MARKET SNAPSHOT: > GLOBAL MARKETS-Shares jump, yields and dollar fall as Fed stays the course > US STOCKS-Dow, S&P 500 end at record highs as Fed leaves stimulus intact > Nikkei hits 8-wk high on Fed policy surprise, commodities stocks soar > TREASURIES-Yields drop as Fed surprises by maintaining purchases > FOREX-Dollar wallows near 7-mth low after Fed's surprise nod to doves > PRECIOUS-Gold near one-week high as Fed keeps stimulus > METALS-LME copper hits 3-week high as Fed sticks to stimulus > Brent rises near $111 after Fed keeps stimulus
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