By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets moved sharply
higher on Thursday, after minutes from the U.S. Federal Reserve's
latest policy meeting showed many members think asset purchases
will likely be needed in 2014.
The Stoxx Europe 600 index climbed 0.9% to 297.61, on track for
a fourth straight day of gains.
Among the biggest movers in the index, shares of Associated
British Foods PLC jumped 5.8% after the ingredients maker and owner
of Primark clothing stores said revenue for the 40 weeks to June 22
was up 9%.
Shares of Telekom Austria AG added 2% after Goldman Sachs lifted
the firm to neutral from sell.
More broadly, investors looked to the U.S., where the latest
news from the Fed fueled a global rally. Minutes from the Fed's
latest policy meeting showed that about half of its 19 senior
officials said they would like to end the central bank's monthly
purchase of $85 billion in bonds by the end of the year, while many
could see a need for continued easing next year.
"This division is acting as a catalyst to optimism as it at
least keeps the debate open as to whether the U.S. economy is
strong enough to cope with a reduction in stimulus measures," said
Shavaz Dhalla, financial trader at Spreadex, in a note.
"Furthermore, officials indicated that there needed to be an
improvement within the labor market before contemplating the
slowing-down of quantitative easing," he said.
Additionally, Fed Chairman Ben Bernanke stressed in a speech to
economists that short-term interest rates will stay low, even if
the unemployment rate falls below the 6.5% threshold. The jobless
rate was 7.6% in June.
U.S. stock futures pointed to a higher open on Wall Street.
Among country-specific indexes in Europe, Germany's DAX 30 index
picked up 1.3% to 8,170.73.
Banks posted some of the biggest gains, with Commerzbank AG up
3.6% and Deutsche Bank AG 1.8% higher.
France's CAC 40 index gained 1.1% to 3,882.42 and the U.K.'s
FTSE 100 index put on 1.1% to 6,573.96.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires