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Dec 14 Reuters Real estate and miners led a rally in European shares on Thursday as risk appetite received a strong boost from the U.S. Federal Reserve39;s indication of lower borrowing costs in 2024, with the focus shifting to the European Central Bank39;s ECBpolicy decision next.

The panEuropean index advanced 1.2 by 0920 GMT, touching a near twoyear high, and the euro zone39;s top bluechip index gained 0.7, reaching an over 22year high.

France39;s CAC40 and Germany39;s DAX also touched fresh alltime highs, up 0.9 and 0.7, respectively.

The euro zone39;s equity volatility index slid to its lowest level since 2020, reflecting market optimism.

Also aiding equities was Germany39;s 10year bond yield dropping to its lowest since March.

Real estate stocks soared 5.8, leading sectoral gains, driven by 79 gains in Sweden39;s Fabege, Balder, Sagax and Germany39;s Vonovia .

The market rally was largely broadbased, with miners jumping 3.5 tracking higher metal prices. Only the insurance sector was down.

The Fed left rates unchanged, with Chair Jerome Powell suggesting that rate hikes were likely done with due to easing inflation and that discussion of rate cuts was coming into view.

Market participants are now pricing in around 155 basis points of ECB rate cuts in 2024, up from Wednesday39;s bets of 135…