Major European stock indices trading in the green zone

European stock markets are showing strong gains after the Federal Reserve refrained from raising interest rates and said it needed more evidence of economic improvement before continuing tightening.

Recall, the US Federal Reserve decided to leave the interest rate at the target range of 0.25-0.50%. The decision of the Central Bank is in line with expectations. Fed Chairwomen made it clear that the central bank still intends to raise the rate this year, but did not specify the terms of such a step. "I expect to see it, if the current process in the labor market will continue and will not be any significant new risks", - she noted. In addition, the Fed reduced its forecast for the hikes for in the next year to two (three). Yellen said that divisions within the FOMC basically boiled down to the terms of a rate hike. According to the futures market, the likelihood of tighter monetary in December is 58.4%.

Traders in Europe and the UK are closely monitoring the changes in the interest rate in the United States, since it is the main driving force for the global economy and foreign exchange markets. "Despite the fact that Fed's monetary policy decision was seen as a" dove ", three of the ten FOMC members with voting rights did not agree with the final decision, and called for an immediate increase in interest rates. In general, this situation increases the likelihood that interest rates will be reviewed in December, "- said Hussain Sayed, chief market strategist at FXTM.

Shares of mining and oil companies, led the increase, receiving support from a weaker dollar after the Fed decision. The positive dynamics of the oil market against the background of data on US oil inventories also supported stocks. US Department of Energy announced that crude oil reserves in the country for the week ended 16 September fell by 6.2 million barrels to 504.6 million barrels. Analysts, on the other hand, expected growth by 2.25 million barrels.

Quotes of BHP Billiton PLC rose by 4,57%, Boliden AB +4.34%, and Randgold Resources Ltd. +3.65%. Among oil companies, Eni SpA shares rose 1,44%, Total SA +2.46%, while BP PLC added 2.5%.

Shares A.P. Moeller-Maersk AS have increased by 0.96% after the Danish company said it would split into two companies - the oil unit and transportation and logistics.

Capitalization of Rocket Internet SE jumped 9.64%, as the German engineering company reported that the largest companies in its portfolio have reduced their combined loss in the first half of the year.

Shares of Ericsson AB climbed 1.81% after media reports that the mobile telecommunications equipment manufacturer plans to close its last manufacturing site in Sweden and cut about 3,000 jobs.

The cost of Electricite de France SA fell 0.74% after late in the evening the service company lowered its forecast for profit.

At the moment:

FTSE 100 +80.16 6914.93 + 1.17%

DAX +206.92 10643.41 + 1.98%

CAC 40 +85.42 4494.97 + 1.94%