European stocks hit record highs after Fed maintains its stance

By Shreyashi Sanyal

Apr 8 (Reuters) – European stocks hit record highs on Thursday as optimism grew around a stimulus-driven global economic rebound after the Federal Reserve indicated it is in no rush to tighten its monetary policy.

* The pan-European STOXX 600 Index improved 0.6%, adding to gains made earlier in the week, when it erased all losses from the pandemic.

* Fed officials remain very cautious in the face of continued risks from the coronavirus pandemic and are committed to boosting the economy until the recovery is safer, minutes from the entity’s last policy meeting indicated on Wednesday. .

* “The caution shown by the minutes of the Federal Reserve meeting further reassured investors that Jay Powell and his gang will not turn off the stimulus taps anytime soon,” Spredex analyst Connor Campbell wrote in a morning note.

* The authorities of the European Central Bank discussed at their meeting last month a smaller increase in bond purchases and agreed to advance them this quarter on the condition that they can be reduced later if conditions allow it, according to the minutes of the meeting.

* European economies are holding up well despite the third wave of the pandemic, said Mark Haefele, chief investment officer at global wealth manager UBS.

* “Now that more vaccines will be available from the second quarter, which should allow for a sustainable reopening, we continue to expect a strong rebound in the latter half of 2021, supported by high levels of savings, stifled demand and a monetary and fiscal policy expansive, “he said.

* Investors generally ignored news that several European countries announced restrictions on the use of AstraZeneca’s COVID-19 vaccine in the very young, after a link to very rare cases of thrombi was found . Shares of the Anglo-Swedish firm advanced 2%.

(Reporting by Sruthi Shankar and Shreyashi Sanyal in Bengaluru; edited in Spanish by Carlos Serrano)