European stocks advanced to their highest level in 14 months after the Federal Reserve said it will buy mortgage-backed securities to encourage economic growth in the world’s largest economy, and as euro-area ministers meet in Cyprus.

The Fed said it will increase its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month. The central bank will continue to buy mortgage- backed securities until the outlook for the labor market substantially improves, the Federal Open Market Committee said yesterday in a statement at the end of its two-day meeting in Washington.

Euro-area finance ministers and central-bank officials will hold a two-day meeting starting today in Cyprus to discuss plans for a banking union in the 17-nation currency zone.

Investments in mining and energy projects “still have some way to run,” Australian Treasurer Wayne Swan told the Australia in China’s Century conference in Sydney today, according to a text of his speech

Antofagasta Plc, which owns copper mines in Chile, surged 8.3 percent to 1,340 pence, its biggest rally in nine months, as metal prices jumped in London.

Nyrstar NV, the largest producer of refined zinc, gained 9.4 percent to 5.23 euros. Evraz Plc, the mining company and steelmaker part-owned by billionaire Roman Abramovich, soared 11 percent to 288.9 pence.

FTSE 100 5,907.01 +87.09 +1.50%

CAC 40 3,572.19 +70.10 +2.00%

DAX 7,417.26 +106.94 +1.46%