2013.07.1106:46:15UTC+00European stocks advance in fed-fueled rally

European stock markets sharply advance on Thursday action, after minutes from the U.S. Federal Reserve’s latest policy meeting showed many members think asset purchases will likely be needed in 2014.

The Stoxx Europe 600 index surged 0.9% to 297.61, on track for a fourth straight day of gains.

Among the largest movers in the index, shares of Associated British Foods PLC climbed 5.8% after the ingredients maker and owner of Primark clothing stores said revenue for the 40 weeks to June 22 was up 9%.

Shares of Telekom Austria AG provided 2% more after Goldman Sachs lifted the firm to neutral from sell.

More broadly, investors looked to the U.S., where the latest news from the Fed fueled a global rally. Minutes from the Fed’s latest policy meeting showed that about half of its 19 senior officials said they would like to end the central bank’s monthly purchase of $85 billion in bonds by the end of the year, while many could see a need for continued easing next year.

“This division is acting as a catalyst to optimism as it at least keeps the debate open as to whether the U.S. economy is strong enough to cope with a reduction in stimulus measures,” said Shavaz Dhalla, financial trader at Spreadex, in a note.

“Furthermore, officials indicated that there needed to be an improvement within the labor market before contemplating the slowing-down of quantitative easing,” he said.

Additionally, Fed Chairman Ben Bernanke stressed in a speech to economists that short-term interest rates will stay low, even if the unemployment rate falls below the 6.5% threshold. The jobless rate was 7.6% in June.

U.S. stock futures pointed to a higher open on Wall Street.

Among country-specific indexes in Europe, Germany’s DAX 30 index  spiked 1.3% to 8,170.73.

Banks recorded some of the largest wins, with Commerzbank AG skyrocketed 3.6% and Deutsche Bank AG 1.8% greater.

France’s CAC 40 index acquired 1.1% to 3,882.42 and the U.K.’s FTSE 100 index put on 1.1% to 6,573.96.