Europe open: Shares push ahead after Fed pledges low rates

European shares opened higher on Thursday after strong showings in Wall Street and Asia overnight as the US Federal Reserve pledged to maintain low interest rates despite forecasting a surge in economic growth.

The pan-European STOXX 600 rose 0.23% in early trade. Germany’s DAX outperformed with an 0.85% increase as automakers drove the market, while the UK’s FTSE 100 was flat ahead of the Bank of England’s monetary policy decision due later in the day.

US Treasury 10-year yields rose again after the Fed decision, sparking rises in automakers, banks, miners and travel & leisure.

In equity news, Volkswagen jumped 3.1% while Porsche was up 5.3%.

National Grid shares fell after the company agreed to buy Western Power Distribution from PPL Corp of the US for £7.8bn and to sell Narragansett Electric to PPL for $3.8bn (£2.7bn) to shift its business towards electricity.

Shares in National Express fell after the transport operator swung to a loss in 2020 as it took a hit from the Covid-19 pandemic.

Ocado stock was in the red after the online supermarket said it expects positive revenue growth in the second quarter after reporting a 40% rise in revenue for the 13 weeks to the end of February as more Britons had their groceries delivered during the current national lockdown.