European markets bounced on Thursday as investors reacted positively to the U.S. Federal Reserve's signal that interest rate cuts will take place next year.
The pan-European Stoxx 600 index closed up by 0.9%, having earlier hit its highest point since Jan. 2022.
Mining stocks jumped 3% to lead gains, as almost all sectors and major bourses finished in positive territory. Insurance stocks bucked the positive trend to fall 1.8%.
On Wednesday, the Federal Open Market Committee kept interest rates unchanged in a range between 5.25% and 5.5%, in line with Wall Street's expectations. Market sentiment was buoyed after policymakers penciled in at least three rate cuts next year. Â
On Wall Street, the Dow rose to a fresh record as investors also cheered more strong economic data, while Hong Kong stocks led a rally among Asia-Pacific equity markets overnight.
Investors in Europe turned their focus to monetary policy decisions from the European Central Bank and Bank of England on Thursday, both of which opted to keep interest rates unchanged.