European stock markets have followed Asia’s by rising after the US central bank unexpectedly said it would not begin scaling back its massive economic stimulus programme.
London’s FTSE 100 index rose 1.4%, Paris’s Cac gained 1.1%, and Frankfurt’s Dax was up 1.2%.
The Federal Reserve said it would not scale back its bond-buying programme until the US economy had improved further.
The bank also cut its growth forecast.
The Fed now estimates that the US economy will grow by between 2.0% and 2.3% this year. That compares to a previous estimate made in June of between 2.3% and 2.6%.
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