European shares rally as Fed sugar-coats taper move

European shares rallied on Thursday after the Federal Reserve sugar-coated the decision to start winding down its crisis-era stimulus with a promise to keep record low interest rates in place even longer than previously signaled. After months of agonizing, investors took the Fed’s decision to trim its bond buying by $10 billion to $75 billion a month largely in their stride, considering it a modest step the U.S. economy could well withstand. Wall Street had ended at a record high and after big gains in Tokyo and some other parts of Asia, European stocks raced out of the blocks up 1.5 percent in their biggest jump in over two months. Crucially, the Fed softened the blow by making its forward guidance on interest rates even more dovish.


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