Markets take Fed tapering in stride

A man looks at an electronic stock board of a securities firm in Tokyo. (AP Photo/Shizuo Kambayashi)

LONDON (AP) — Investors around the world were largely unfazed Thursday by the surprise decision by the U.S. Federal Reserve to reduce its monetary stimulus. Most breathed a sigh of relief that the decision was accompanied by a commitment to low interest rates for a while yet.

In fact, stocks in Europe and a number of markets in Asia followed the U.S.’s lead — the S&P 500 closed at a record high Wednesday — and recorded strong gains. The dollar is also solid, having recouped some recent losses, particularly against the euro, in the aftermath of the Fed’s decision. However, jitters over the impact on emerging economies kept some markets in check.