The European market opened green on Friday, advancing from its sharp loss on Thursday after the Federal Reserve announced the cut in its monthly bond purchases later this year and end by 2014, if the US economy continues to grow and improve.
The European Euro Stoxx 50 rose 0.35% at 2,595.47 as of 7:01am GMT, while the German’s DAX opened at 0.30% higher to 8,053.15. At the same time, the French CAC rose 0.48% to 3,716.68 and the UK’s FTSE 100 advanced 0.23% to 6,173.50.
“Markets are bracing for the day that they no longer have steroid injections to keep them going. Instead, fundamentals will become important to sustain gains in risk assets. Signs of firmer US and Chinese growth and stabilization in Europe will eventually drag markets out of their turmoil,” analysts at Credit Agricole wrote in a note.
The Global equity market ,lost ground on Thursday after the Fed Chairman Mr. Bernanke hinted a possible reduction of its quantitative easing (QE) program later this year and end it by next year if the US economy continues to improve .
Euro zone current account for April is yet to be released, as it is expected to show a surplus of 15.1 billion on a seasonally adjusted basis. Meanwhile, the European Union finance ministers are still discussing a possible direct recapitalization of the euro zone bloc’s banks to save them from falling.
The Asian shares opened at a negative territory of Friday. The Chinese Shanghai Composite dropped 0.50% to close at 2,073.09 as of 7:01 am GMT, while the Japanese Hang Seng fell 0.64% to 20,251.76 at the same time.