LONDON — European stocks moved slightly higher on Thursday as markets around the world react to the Federal Reserve's latest outlook on the U.S. economy.
The pan-European Stoxx 600 gained 0.2% with banks jumping 1.5% while utilities shed 0.7%. Germany's DAX was the standout performer in the region and touched a record high early in Thursday's trade.
European markets are mostly following positive global sentiment after comments from the Fed, which concluded a two-day meeting Wednesday. U.S. stock futures rose in the overnight session Wednesday evening, after the Fed said that it does not currently expect to hike interest rates through 2023.
Fed Chair Jerome Powell reiterated that the central bank wants to see inflation consistently above its 2% target, and material improvement in the U.S. labor market, before considering changes to rates or its monthly bond purchases.
The Fed also said it expects to see gross domestic product grow 6.5% in 2021, before cooling off in later years and inflation rise 2.2% this year, as measured by personal consumption expenditures.
In Europe, the Bank of England is meeting Thursday although no policy change is expected. Meanwhile, European markets will be awaiting the conclusion of the European Medicines Agency's (EMA) safety review into the coronavirus vaccine developed by AstraZeneca and the University of Oxford. Its safety committee is meeting Thursday.
The move came after a handful of countries suspended the use of the vaccine over blood clot concerns, despite the World Health Organization and the EMA saying there was so far no evidence of a link between the shot and a small number of reports on blood clots.
Earnings on Thursday morning came from Generali, Hugo Boss, Rolls-Royce, WPP, Morrisons and John Lewis Partnership.
German pharmaceutical company Sartorius saw its shares jump 9% in early trade after raising its 2021 guidance, with spin-off Sartorius Stedim Biotech gaining 7%.
German auto parts manufacturer Varta climbed 5.5% while the country's largest lenders, Deutsche Bank and Commerzbank, both added more than 4%.
At the bottom of the European blue chip index, Swiss online pharmacy Zur Rose Group fell more than 8% after its full-year earnings report.
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