Market Update
European markets moved up in unison Thursday following the Federal Reserve’s tapering announcement the prior day and after European Union finance ministers agreed on how to deal with failing banks ahead of a summit due to begin later in the day in Brussels.
The FTSE was up 0.9%. The CAC 40 Paris rose 1.6% while the German DAX was also 1.6% higher.
On Wednesday, the U.S. Fed also reiterated interest rates will remain low even after the unemployment rate drops below 6.5%, the threshold at which it had earlier said it would start to contemplate rate hikes.
In Europe, EU ministers put together a deal that includes a 55 billion euro industry-financed resolution fund over the next ten years to deal with failing banks.
Data earlier Thursday showed the euro-zone account surplus widened unexpectedly in October to hit its highest level in six months.
Stocks on the Move
U.K. banks also tracked their European counterparts higher with RBS and Barclays both up 1.9% each while Lloyds Banking rose 1.8%.
AstraZeneca gained over a percent. The company agreed to pay $3.4 billion to Bristol-Myers Squibb for its stake in their joint venture to make diabetes drugs.
BNP Paribas rose 1.4% while Societe Generale gained 2%.
In Frankfurt, Bayer was up 1.1% after it raised its bid to $2.87 billion for peer Algeta ASA as it aimed to strengthen its portfolio of oncology drugs. Bayer said Algeta’s board of directors unanimously decided to recommend to its shareholders to accept the offer.
Siemens AG was up 1.8%.
Elsewhere, Swedish plane-maker Saab AB rocketed up over 24% after winning a deal to sell 36 fighter jets to Brazil’s armed forces.