Stocks gain on FED tapering news

US stocks closed higher on Thursday as markets reacted positively to the Federal Reserve’s stance on asset purchases, tapering and raising interest rates, overshadowing downbeat manufacturing and services data. The S&P 500 climbed 1.21% to 4,448.98. The Dow Jones Industrial Average gained 1.48% falling to 34,764.82 while the Nasdaq Composite was higher by 1.04% at 15,052.25. The 10-year US Treasury yield surged 10 basis points to 1.43%.

European stocks also climbed on Thursday as investors were reassured that the scaling back of stimulus measures by the Federal Reserve will be commensurate to the pace of economic recovery. Stoxx 600 Europe Index rose 0.93% on Thursday, DAX increased by 0.88%, and CAC 40 gained 0.98%, while FTSE 100 dropped by 0.07%. Germany’s 10-year yield touched a new two-month high on Thursday after U.S. data delivered positive surprises, while Austria received record demand for a debt sale. Most maturities along the German sovereign yield curve were little changed, while 5-year yields rose in Thursday morning trading.

sian stocks rose for a second day, led by rallies in Japan and Taiwan, following U.S. peers higher amid optimism over the Federal Reserve’s bullish economic outlook and fading concerns over contagion from Evergrande.

Brent crude futures settled at the highest level in almost three years as supplies shrink at a time when a global energy crunch makes it increasingly likely crude will be tapped for power generation. Brent crude futures price was $77.25 a barrel on Thursday, up 1.39%. U.S. West Texas Intermediate (WTI) crude futures stood at $73.30, up 1.07%.