Stocks across Europe bounded higher Wednesday, bolstered by rises in financial shares after the Bank of Japan tweaked monetary policy in a way that should help yield-dependent businesses. Stocks rose after the BOJ unexpectedly said it would start targeting 10-year interest rates, committing to keep them around zero as part of a new policy framework aimed at bolstering inflation. The central bank will maintain quantitative easing until its inflation target of 2% is overshot, and it kept its main interest rates unchanged.
U.S. stocks rallied Wednesday, with the Nasdaq Composite closing at a record, after the Federal Reserve opted to keep interest rates unchanged as it sought further evidence of economic strength. The policy-setting Federal Open Market Committee, in a 7-to-3 vote, opted to keep rates steady in what Chairwoman Janet Yellen described as a "new normal" as central banks elsewhere around the globe embark upon quantitative-easing measures. Yellen also said she is "pleased with" the health of the economy.
Asian stocks shot higher across the board Thursday, buoyed by the U.S. Federal Reserve's decision to stick to the status quo, as well as rising commodity prices. Overnight, the Federal Reserve opted to hold its key short-term interest rate steady. Asia-based traders welcomed the news as a rate rise would have pulled money out of emerging markets.
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