LONDON, Oct 9 (Reuters) - European shares bounced back from the previous session’s two-month lows on Thursday on expectations that the U.S. Federal Reserve will keep interest rates low for a longer period.
The FTSEurofirst 300 index of top European shares was up 1 percent at 1,332.10 points by 0705 GMT, after falling 0.8 percent in the previous session.
The market was rallying following the release late on Wednesday of the minutes of the Fed’s Sept. 16-17 meeting.
The U.S. central bank expressed concern the rising dollar could slow a needed rebound in inflation and highlighted economic turmoil in Europe and Asia, another factor behind the Fed’s stance towards keeping an accommodative policy for the near future.
European equities, however, remained vulnerable to further declines following Europe’s poor economic outlook, traders said.
Figures showed on Thursday Germany exports slumped by 5.8 percent in August, their biggest fall since the height of the global financial crisis in January 2009, in yet another sign that Europe’s largest economy was faltering. (Reporting by Atul Prakash; Editing by Blaise Robinson)