European stocks push higher, Fed statement supports; Dax up 0.96%

European stocks pushed broadly higher on Thursday, as the Federal Reserve's latest policy statement continued to support equity markets.

The Fed reiterated on Wednesday that it expects rates to remain on hold for a "considerable time", after its bond purchasing program ends, but it also outlined in more detail how it will start to raise short term interest rates when the time comes.During European afternoon trade, the DJ Euro Stoxx 50 advanced 0.75%, France’s CAC 40 climbed 0.64%, while Germany’s DAXjumped 0.96%.

The Fed cut its monthly asset purchase program by another $10 billion, keeping the program on track to finish next month.

Also Thursday, the European Central Bank said it allotted €82.6 billion to 255 bidders in its new Targeted Long Term Refinancing Operation, or TLTRO, well below the €100 to €150 billion predicted by analysts.

The low loan uptake indicated that the operation will have only a limited impact on boosting liquidity in the euro area. A second operation will be held in December.

The ECB is offering up to €400 billion of cheap liquidity under eight TLTRO operations in order to encourage lenders to offer credit to small businesses and boost inflation in the region.

Separately, investors remained cautious following reports ratings agency Moody’s could downgrade France by one notch from Aa1 to Aa2. Moody’s was to issue a new rating decision on Friday.

Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) jumped 1.08% and 1.95%, while Germany's Deutsche Bank (XETRA:DBKGn) rallied 1.73%.

Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) gained 0.65% and 1.34% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) advanced 1.02% and 1.17%.

Elsewhere, Bayer AG (XETRA:BAYGN) surged 4.99% amid reports the German chemical and pharmaceutical company plans to spin off its plastics unit.

In London, FTSE 100 gained 0.45%, still led by TUI Travel (LONDON:TT), up 3.95%, after it announced last week the decision to unite with German parent company Tui AG (XETRA:TUIGn) in a €6.5 billion merger that will create the world’s largest tourism business.

Financial stocks were also broadly higher, as HSBC Holdings (LONDON:HSBA) and Lloyds Banking (LONDON:LLOY) climbed 0.64% and 0.85%, while Barclays (LONDON:BARC) and the Royal Bank of Scotland (LONDON:RBS) rallied 1.18% and 1.28% respectively.

In the mining sector, stocks remained on the downside. Shares in Bhp Billiton (LONDON:BLT) slid 0.36% and Rio Tinto (LONDON:RIO) retreated 0.65%, while rivals Fresnillo (LONDON:FRES) and Randgold Resources (LONDON:RRS) plummeted 1.94% and 2.09%.

In the U.S., equity markets pointed to a higher open. The Dow 30 futurespointed to an 0.30% rise, S&P 500 futures signaled a 0.40% gain, while the NASDAQ 100 futures indicated a 0.44% increase.

Later in the day, the U.S. was to produce reports on initial jobless claims, building permits, housing starts and manufacturing activity in the Philadelphia region.