Europe open: Shares make strong start after US rate decision
European stock markets opened strongly higher Thursday as investors digested the latest rate hike from the US Federal Reserve, another corporate earnings dump and looked ahead to a policy decision from the European Central Bank.
The Stoxx 600 was up by 1% with all major regional bourses higher.
As expected, the Fed lifted rates by 25 basis points to a target range of 5.25%-5.5% - the highest level in 22 years. Chairman Jerome Powell said inflation has moderated somewhat since the middle of last year, but hitting the Fed’s 2% target “has a long way to go”.
“I would say it’s certainly possible that we will raise funds again at the September meeting if the data warranted,” Powell said. “And I would also say it’s possible that we would choose to hold steady and we’re going to be making careful assessments, as I said, meeting by meeting.”
The ECB is also expected to increase rates to 3.75% from 3.5%.
In equity news, shares in UK asset manager St James's Place slumped as it reported a fall in profits.
Barclays stock was lower as interim profits missed expectations and it expected lower net interest margins for the full year.
Centrica and UK car dealer Inchcape both made strong gains after results.
Reporting by Frank Prenesti for Sharecast.com