European stocks extend gains after Fed news

LONDON, June 19 (AFP): European stock markets climbed on Thursday after the Federal Reserve indicated that ultra-low US interest rates would remain in place for a considerable time.

London's FTSE 100 index of top companies rose 0.80 per cent to 6,833.17 points nearing midday in the British capital.

Frankfurt's DAX 30 advanced 0.83 per cent to 10,012.27 points and in Paris the CAC 40 index gained 0.90 per cent to 4,571.36 compared with Wednesday's close.

The European single currency increased to $1.3636, from $1.3593 late in New York.

After a closely watched meeting, the Fed's policy committee said it would cut a further $10 billion from its monthly bond-buying, known as quantitative easing (QE), and maintain its "highly accommodative" monetary policy of record-low interest rates.

Policymakers added in an upbeat statement that US economic growth "has rebounded in recent months" from the first-quarter contraction, while household spending and business investment were both rising.

The committee "believes that economic activity is rebounding in the current quarter and will continue to expand at a moderate pace thereafter," said Fed chief Janet Yellen said at a news conference.

There was no mention of an earlier hike in interest rates than mid-2015, providing dealers with at least another year of ultra-cheap money.