European stock markets rally on US Fed decision
Euro Stoxx index jumps to five-year levels on continued stimulus19 September, 15:28
In Europe, stock markets jumped to levels not seen in five years following the Fed's surprise decision Wednesday that it will not yet begin to taper its massive bond-buying program.
The blue-chip FTSE Euro Stoxx index, which follows the performance of the major stocks in Europe, reached levels last seen in mid-September 2008.
In Milan, the leading FTSE MIB index climbed by 1.58% by mid-day while the FTSE All-Share gained 1.41%, led by strengthening bank shares.
Bond markets were equally buoyed by the decision from the US central bank.
The spread between Italy's benchmark 10-year bond and its safe-haven German counterpart opened trading at 235 basis points, down from the previous day's close of 240 basis points.
The Italian bond rate opened at 4.22%.
The spread between Italian and German paper is a good indicator of investor confidence in Italy's struggling economy, when compared with the more stable economy in Germany.