What a great day, European stock markets rose Thursday, of course the main factor boosted by the U.S. Federal Reserve saying it would likely keep interest rates low until at least late 2014. And then London's FTSE 100 Index rose by 0.4% at the open, the DAX in Frankfurt gained 0.6% and the CAC-40 Index in Paris was 0.6% higher.We expect can be more ariseAs we knew that previously the Fed had said it expected the period of exceptionally low rates to last until mid-2013, so an extension of the low-rate environment should see market participants increase their appetite for risk, said Capital Spreads. On Wednesday, the Fed's comments helped the Dow Jones Industrial Average finish up 0.7% to 12758.85 and the Standard & Poor's 500 index to end 0.8% higher at 1326.06.
Positive signal is spreading to all over market sentiment, Capital Spreads also noted that traders are also likely to jump on Fed chairman Ben Bernanke's comments that "there is a case for additional policy action" as a possible nod towards a third round of quantitative easing. This act really helping the market
"With the 'elevated' unemployment rate and 'subdued' inflation rates in the U.S. running counter to the Fed's statutory mandate of maximum employment and price stability, some traders may see [Mr.] Bernanke needing to give the economy an extra nudge to maintain the recovery," added Capital Spreads. This is because no major economic events in Europe, markets will keep an eye out for further reports regarding the Greek debt-swap agreement. Additionally, an Italian bond auction later in the day should also indicate market opinion toward the euro-zone 'periphery.' In the U.S., jobless claims and durable-goods orders are both due to be published at 0830 ET. After that, U.S. leading indicators and new home-sales data will both be released at 1000 ET.
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