European shares touch 2-week high as Fed keeps rates unchanged

jueves 22 de septiembre de 2016 04:09 GYT
 

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* STOXX Europe 600 index up 0.7 pct

* Commodities shares among top gainers

* EDF falls after cutting earnings outlook

By Atul Prakash

LONDON, Sept 22 (Reuters) - European shares climbed to a two-week high on Thursday, boosted by a rally in mining equities, after the U.S. Federal Reserve left interest rates unchanged and projected a less aggressive path for hikes next year and in 2018.

The Fed, however, signaled it could still tighten monetary policy by the end of this year as the labour market improved further. Fed Chair Janet Yellen said U.S. growth was looking stronger and rate increases would be needed to keep the economy from overheating and fueling high inflation.

The pan-European STOXX 600 index rose for a second straight session and was up 0.7 percent by 0748 GMT after touching its highest level in two weeks. However, the index is still down around 6 percent so far this year.

"Markets are getting support not only from the inaction of the Fed but also the relatively dovish comment by Janet Yellen. A rate hike is probable in December, but it has once again become clear that rates will go up only very gradually," said Philippe Gijsels, head of research at BNP Paribas Fortis.   Continuación...