Italy-German spread stable at 236 basis points
Milan, other European markets rise on optimism over Fed decision19 September, 19:57
The FTSE-Mib jumped by 1.43% to close trading at 18,059 points as the US central bank announced it would continue with its policy of buying $85 billion of bonds each month to support economic growth and job creation.
That measure, known as quantitative easing, has been credited with keeping the US economy - and by extension, economies in many other countries - from collapse. Bond markets were equally buoyed by the decision from the US central bank, which was demonstrated by stability in the spread between Italy's 10-year bond and its ultra-safe German counterpart.
The spread closed at 236 basis points after slipping to as low as 235 basis points during mid-day trading.
The yield on Italian 10-year paper closed at 4.28%.
The spread between lending rates in the two countries is seen as an indication of investor faith in the Italian economy and its ability to cope with a lingering recession.
On other European markets, Spain's IBEX 35 gained 1.0% to 9,153.70 points while Frankfurt's DAX rose by 0.67% to close at 8,694.18 points.
In Paris, the CAC 40 gained 0.85%, closing at 4,206.04 points, while in London, the FTSE index of leading British shares gained 1.0% to close at 6,625.39.