Stock exchanges in Europe reversed previously registered losses on Wednesday with traders' focus locked on the Federal Reserve's decision following the two-day meeting.
The optimism that the financial industry crisis has abated seemingly swept aside the concerns about policymakers' next step, fueling the positive sentiment in the markets, with equities of major European banks rallying during the trading hours. According to Goldman Sachs economists, the Federal Reserve might opt to pause interest rate increases following the banking sector turmoil.
Frankfurt's DAX rose 0.46% and the Euro Stoxx 50 gained 0.34% at 12:50 pm CET. London's FTSE 100 added 0.37% and the CAC 40 advanced 0.24%.
The euro traded 0.24% higher against the dollar, to sell at $1.07944 at 12:53 pm CET. At the same time, the pound sterling jumped 0.48% versus the greenback, changing hands to $1.22756.
