European stocks follow Wall St higher Europe's equity markets moved higher on Thursday as investors around the world welcomed news that the Federal Reserve had started reducing its stimulus programme by $10bn a month as a sign the US economy is returning to health. After gains on Wall Street, where the S&P 500 reached a new record of 1,810.0, and in Asia, Europe's main indices also moved higher. The FTSE Eurofirst 300 gained 0.9 per cent to 1,270.53 as resource stocks and financials were in the lead at sector level thanks to rising risk appetite around the region. There were also gains for industrial and technology stocks, while defensive sectors came under pressure. The FTSE 100 in London climbed 0.9 per cent to 6,550.99 in a broad rally, with only four of the main index's constituents making losses - among them insurer RSA Insurance, which faces concerns over its capital position after it revealed losses in its scandal-hit Irish business. Its shares fell 1.4 per cent to 89.2p. Banks made notable gains. Barclays added 2.5 per cent to 258.1p, while Lloyds Banking Group gained 1.9 per cent to 77.7p. Frankfurt's Xetra Dax 30 rose 1 per cent to 9,273,57. Its gains were also broad, and were led by carmakers and industrial stocks. The US central bank said it would reduce its monthly asset purchases from $85bn a month to $75bn, split evenly between Treasuries and mortgage-backed securities. Andy McLevey, head of dealing at stockbroker Interactive Investor, said: "European markets have taken the lead from all-time closing highs in the US and opened positively this morning. With tapering of sorts largely priced into the markets the Fed decision to modestly trim the pace of the bond-buying programme together with a dovish tone on forward guidance has encouraged investors at the strength of the US economy.