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Europe: Stocks rise at open before Fed

Wednesday, September 21, 2016 - 15:53
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[LONDON] European stock markets advanced at the open on Wednesday after the Bank of Japan tweaked its monetary policy easing programme, and before the US Federal Reserve's latest interest rate call.

In initial trade, London's benchmark FTSE 100 index won 0.6 per cent to stand at 6,874.61 points compared with the close on Tuesday.

In the eurozone, Frankfurt's DAX 30 added almost 1.0 per cent in value to 10,496.43 points and the Paris CAC gained nearly 1.2 per cent to 4,439.70.

In Asia, Tokyo soared 1.9 per cent after the Bank of Japan (BOJ) adjusted its stimulus plan in a renewed attempt to jumpstart Japanese inflation and the lukewarm economy, providing a healthy start to world markets on what has been dubbed "Big Wednesday".

"The first of the day's central bank drama has gone down well, with the Bank of Japan tinkering with their stimulus package much to the delight of the markets," said Spreadex analyst Connor Campbell.

Later in the day, the US central bank will wind up its own policy meeting.

In recent weeks, Fed officials have issued contradictory opinions on the need for a hike in interest rates, sparking volatility on global markets.

While it is not expected to tighten this month, the policy board's statement will be pored over for clues about its plans for its next meeting in December, or January.

AFP