ROME: European stocks climbed to their highest level since 2000, as the Federal Reserve acknowledged a moderation in economic growth, fueling speculation it won’t be in a rush to raise interest rates.
All but two of the 19 industry groups on the Stoxx Europe 600 Index advanced, with energy companies leading gains. Royal Dutch Shell Plc rose 1 percent, while Premier Oil Plc added 8 percent, for the biggest increase on the equity benchmark.
The Stoxx 600 increased 0.6 percent to 400.83 at the close of trading. Equities climbed Wednesday as U.K. shares rallied after a budget presentation and Swedish stocks jumped after a rate cut. The Stoxx 600 has surged 17 percent this year.
“On the back of yesterday’s [Wednesday’s] announcement, they gave themselves more room for this slower interest rates rises, which is good for equities and good for bonds,” said William Hobbs, head of equity strategy at Barclays Plc’s wealth-management unit in London, referring to the Fed.
