European shares surge

LONDON, Rabi’I 06, 1437, December 17, 2015, SPA — European shares surged in early trading on Thursday after investors saw the U.S. Federal Reserve’s move to raise interest rates for the first time in nearly a decade as a sign of confidence in the world’s biggest economy, Reuters reported.

The pan-European FTSEurofirst 300 index was up 1.8 percent at 1,441.51 points by 0804 GMT after climbing to a one-week high, while Germany’s DAX, France’s CAC and Britain’s FTSE 100 rose 1.4 to 2.1 percent.

The Fed made clear that the 25-basis point rate hike was a tentative beginning to a “gradual” tightening cycle, and that in deciding its next move it would put a premium on monitoring inflation, which remains mired below target.

The Fed’s policy statement noted the “considerable improvement” in the U.S. labor market, where the unemployment rate has fallen to 5 percent. It also added that policymakers were “reasonably confident” inflation will rise over the medium term to the Fed’s 2 percent objective.
–SPA
12:08 LOCAL TIME 09:08 GMT