European markets rise after record ECB rate hike

European markets rose on Friday as investors a Achievement rate rise Further comments from European Central Bank and Federal Reserve President Jerome Powell.

The pan-European Stoxx 600 rose 1.7% in afternoon trade, with all sectors trading in positive territory. Mining stocks were 2.8% higher to lead gains, while banks rose 2.5%.

On Thursday, the European Central Bank announced a 75 basis point interest rate hike, taking its key deposit rate to 0.75%. The bank raised its inflation expectations – to an average of 8.1% in 2022 – and said it expects to raise rates further as “inflation remains very high and will remain above target in the long term”.

Meanwhile, the Fed’s Powell said Thursday that the U.S. central bank will Raise rates to deal with inflation “until the job is done.”

“History strongly warns against premature easing,” Powell said at the Cato Institute, a libertarian think tank based in Washington, D.C. “I can assure you that my colleagues and I are committed to this plan. The job is done.”

Asia-Pacific markets were higher As investors digested the Fed’s news, and US stock futures were also in positive territory.

Meanwhile, world leaders He paid tribute to Queen Elizabeth IIBritain’s longest-reigning monarch died on Thursday aged 96.

The Bank of England said on Friday it would postpone September’s monetary policy meeting by a week as the country enters a period of national mourning.

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