European shares buoyed by miners as Fed keeps rates unchanged
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* STOXX Europe 600 index up 1.6 pct
* Miners touch highest since Aug. 2015, oils up
* EDF underperforms 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 stocks, 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, signalled 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 fuelling high inflation.
The pan-European STOXX 600 index rose for a second straight session and ended up 1.6 percent at its highest closing level since Sept. 9. However, the index is still down around 5 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...