European stocks rallied after the Federal Reserve’s decision to slow the pace of its bond purchases boosted investor confidence in the U.S. economic recovery. U.S. index futures slipped after equities jumped to a record in New York, while Asian shares pared gains.

The U.S. central bank said it plans to cut its monthly bond purchases to $75 billion from $85 billion, taking its first step toward unwinding the monetary stimulus that Chairman Ben S. Bernanke put in place to help the economy recover from one of its worst recessions. The Fed’s purchases will be divided between $40 billion in Treasuries and $35 billion in mortgage bonds starting in January, Bernanke said after concluding a two-day policy meeting.

The central bank reiterated that it will probably hold its target interest rate near zero at least as long as unemployment exceeds 6.5 percent and the outlook for inflation is no higher than 2.5 percent. A majority of Federal Open Market Committee participants, or 12 out of 17, predict the first increase in the main interest rate in 2015.

Saab surged 23 percent to 163.10 kronor. The Swedish maker of Gripen jets beat Boeing Co. and Dassault Aviation SA to win the contract to supply 36 jet fighters to South America’s largest economy.

Amadeus rose 1.5 percent to 28.80 euros. Group revenue will be 3.16 billion euros ($4.4 billion) in 2013, while adjusted earnings will be 1.40 euros per share, the company said in a statement late yesterday. That compared with the average analyst estimate of 3.1 billion euros in sales and 1.39 euros in earnings per share for this year. Amadeus will also increase its gross interim dividend to 30 euro cents.

Algeta advanced 1.6 percent to 359.20 kroner, its highest price since it sold shares to the public in 2007. Bayer will begin an offer to buy Algeta shares at 362 kroner each, the Leverkusen, Germany-based company said. Algeta said last month it had received a preliminary offer from Bayer for 336 kroner.

FTSE 100 6,557.14 +65.06 +1.00%

CAC 40 4,167.46 +57.95 +1.41%

DAX 9,314.5 +132.75 +1.45%