(MENAFN– ecpulse)
European stocks gained early Wednesday, joining rallies in Asia after a rate spike by the Turkish Central Bank ahead of the Federal Reserve`s policy announcement.
Equities are bouncing back more strongly from the heavy selloff in the previous two session, fanned by the aggressive rate hike from the Turkish central bank, which raised its overnight lending rate 2% from 7.75% in the first emergency meeting since 2011 on Tuesday evening. The move came to tackle the lira`s heavy losses. US futures are called to open on higher note.
As of 03:03 a.m. EST, the Stoxx Europe 600 was up 0.959% at 326.75. The top winners on the benchmark were basic materials, adding 1.58% on gains.
Asian equities were boosted by the rate hike, while worries over volatility in the emerging market currencies were soothed. The Turkish Central Bank`s move came following an unexpected rate hike from the Reserve bank of India yesterday.
- Britain`s FTSE 100 rose 0.69% to 6,617.97
- France`s CAC 40 rose 1.00% to 4,227.39
- Germany`s DAX 30 rose 1.13% to 9,513.07
Taking a look at some of the equity movers, miners gained with Novartis AG rising 0.50% after the Swiss pharma group trailed earnings forecast but gave an upbeat outlook for the year ahead and boosted its dividend.
Anglo American Plc jumped 5.00% in London after reporting higher-than-expected production in its Iron ore in the fourth quarter.
In the US, the Federal Open Market Committee (FOMC) will be concluding their two-day policy meeting, which is the Fed’s first meeting of the year and also the final one for the outgoing Ben S. Bernanke as chairman.
The current Vice President Janet Yellen will be his successor and will take over as the first women to lead the world’s most powerful central bank on Jan. 1.
Investors are craving for fresh hints about the Fed`s stimulus outlook amid expectations of a further cuts in the banks bon buying program. In December, the Fed announcemd its first first cut to stimulus by $10 billion to $75 billion in bond purchases that has underpinned an economic recovery.
Meanwhile, a consesnus believes the bank will cut another $10 billion from its program to $75 billion this month.
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