Europe: Stocks rally at open, before Fed outcome

[LONDON] European stock markets rose strongly at the open Wednesday with all eyes on the Federal Reserve's policy meeting outcome.

London's benchmark FTSE 100 index grew 1.0 per cent to 7,448.09 points.

In the eurozone, Frankfurt's DAX index was up 1.1 per cent to 15,289.84 points and the Paris CAC 40 jumped 1.2 per cent to 6,920.74.

Markets are waiting for further indications over the number of times the Fed is likely to raise US interest rates this year to combat decades-high inflation.

"The big question going into this meeting for traders and investors is whether the Fed will increase... four times this year and when the first interest rate hike will take place," said Naeem Aslam, chief market analyst at Avatrade.

"Market players understand that the Fed needs to raise the interest rate. Hence, they have prepared themselves for an interest rate hike next month."

AFP