LONDON, Sept 19 European stock markets opened
higher on Thursday after the U.S. Federal Reserve surprised
investors by sticking to its programme of economic stimulus,
sending regional indexes to multi-year highs.
Germany's DAX hit a new record, France's CAC
and the pan-European FTSEurofirst 300 index hit
five-year highs while the euro zone's blue-chip Euro STOXX 50
index rose to its highest since May 2011.
The Fed said on Wednesday 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 U.S. central bank said it wanted more evidence of solid
economic growth before it started to scale back the programme,
and the Fed also cut its growth forecasts.
The Fed's decision to keep the programme - known as
quantitative easing - unchanged drove U.S stock markets to
Terry Torrison, managing director of Monaco-based McLaren
Securities, said that while he had some concerns that the Fed's
decision raised questions over the strength of the U.S. economic
recovery, he would follow the momentum of rising stock markets
"We will continue higher but it seems to me that there's a
warning there from the Fed that they're putting all this cash
into the market but they're not sure it's fully working," he
"However, you've got to stick with the momentum. For
equities, the weight of money is still there waiting to come
in," he added.