(RTTNews) - German stocks rallied on Thursday as a signal by the Federal Reserve that it would raise interest rates in 2022 reduced a source of uncertainty for markets.
The Fed announced its widely expected decision to trim its bond purchases by $30 billion per month.
While the central bank's latest projections forecast as many three rate hikes in 2022, Fed Chair Jerome Powell stressed that the Fed's policies are flexible and adaptable to any change in its economic outlook.
In particular, he warned that any resurgence in Covid-19 could slow down the need for a rate hike.
The benchmark DAX jumped 284 points, or 1.8 percent, to 15,760 after closing 0.2 percent higher the previous day.
Banks topped the gainers list, with Commerzbank climbing 2.6 percent and Deutsche Bank adding 2.2 percent.
Metro AG fell over 1 percent after the retailer posted a loss for its fiscal year 2021 and said it doesn't plan to distribute a dividend for the period.
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