European stock markets scored solid advances on Thursday after the U.S. Federal Reserve refrained from raising interest rates and said it needs more evidence of a stronger economy before it tightens policy. Mining and oil firms were among the biggest advancers, scoring a boost from a weaker dollar in the aftermath of the Fed decision, released after the European close on Wednesday.
U.S. stocks closed near session highs Thursday, with the Nasdaq Composite notching a record close, as investor enthusiasm following the Federal Reserve's most recent policy update spilled over into a second session. The Fed stood pat on interest rates on Wednesday, but Chairwoman Janet Yellen indicated a rate rise is likely by year-end as she expressed confidence in the U.S. economy. Better-than-expected weekly jobless claims data, which fell to the lowest tally since July, signaled a strong labor market and helped extend the optimistic tone on Wall Street.
Asian shares were mixed early Friday, with some markets seeing support amid easing worries that central banks globally would hike interest rates soon. Nonetheless, the currency retreated slightly against the U.S. dollar on Friday, on caution over a possible response from Japanese authorities against the yen's latest strength, after a meeting among top Japanese finance officials on Thursday.
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