LONDON European stock markets surged in midmorning trading on Thursday following the U.S. Federal Reserve’s long-awaited decision to raise the benchmark interest rate in a sign the nation’s economy is gaining steam.

The DAX in Frankfurt led the upswing, rising 3 percent to 10,784.96, followed by the CAC 40 in Paris, 2.5 percent to 4,741.11, and the FTSE MIB in Milan, 2.4 percent to 21,708.15. The FTSE 100 in London advanced 1.4 percent to 6,147.94.

The surge in European markets follows gains in the Asian indices, which rallied following the Fed’s decision to broaden the benchmark rate for the first time since 2006. The interest rate range is now between 0.25 percent and 0.50 percent, up from 0 percent to 0.25 percent.

Retail and luxury stocks were also on the upswing, with the morning’s biggest gainers including Kering, 3 percent to 160.45 euros; Jimmy Choo, 6 percent to 1.23 pounds; J Sainsbury, 5.1 percent to 2.61 pounds;, 4.5 percent to 33.96 pounds; Metro, 3.4 percent to 29.44 euros, and Salvatore Ferragamo, 3 percent to 22.61 euros.

Among the very few stocks that lost ground were, 1.6 percent to 0.34 pounds; and Britain’s Bonmarche Holdings, 2.6 percent to 2.05 pounds following the announcement of the departure of the company’s chief executive officer, and a profit warning three weeks after a set of disappointing first-half results.

The European market surge comes after a downbeat start to the week, with markets in the doldrums from falling oil and commodities prices, and worries over the slowdown in the Chinese economy.

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