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Market Update

Europe Joins Global Rally, Cheers Fed's Decision

European markets were all trading higher Thursday, in line with their global counterparts as investors applauded the U.S. central bank's decision to continue its current bond-buying program.

Britain's FTSE 100 gained 1.4% at 8:53 a.m. London time, France's CAC 40 Paris added 1.3% while Germany's DAX Frankfurt was up 1.4%, hitting a record high of 8,749.99.

Asian markets notched higher earlier in the day while Wall Street stocks also scored record gains Wednesday after the Federal Reserve delayed plans to scale back the ongoing easy monetary policies. Officials said they would wait to see more signs of sustained improvement in the U.S. economy before paring back the stimulus.

Risk sentiment improved, and global stock markets as well as commodities jumped on heels of the announcement.

Precious metals gold and silver soared 4.7% and 6.9% during European morning hours, while crude oil was trading 0.6% higher at $108.66 per barrel.

Stocks on the Move

Resources stocks were among the forerunners. Leading miner BHP Billiton Plc. bounced 2.8% in London, Rio Tinto Plc. jumped 3.4% while Anglo American Plc. surged 4.7%.

Oil giant BP Plc. was up 0.7% and Royal Dutch Shell tacked on a percent.

Among financials, French lenders BNP Paribas SA, Societe Generale SA and Credit Agricole SA all climbed over a percent while German banking giant Commerzbank AG rallied 2.2%. Deutsche Bank AG was 1.6% firmer.

Also in Germany, RWE AG gained over a percent after reports said the company was mulling a three-year freeze on wages in union negotiations.