- US, European markets rise as investors weigh rates, earnings
- In Colombia, children trade plastic waste for school supplies
- JPMorgan Chase profits top estimates, bank sees 'resilient' US economy
- Little progress at key meet ahead of COP29 climate summit
- 'Party atmosphere': Skygazers treated to another aurora show
- Kyrgyzstan opens rare probe into glacier destruction
- European Mediterranean states discuss Middle East, migration
- Thunberg leads pro-Palestinian, climate protest in Milan
- Stock markets diverge before China weekend briefing
- EU questions shopping app Temu over illegal products risk
- Han Kang's books sell out in South Korea after Nobel win
- Shanghai markets sink ahead of briefing on mixed day for Asia
- Investors, analysts eye bigger China stimulus at Saturday briefing
- Musk unveils robotaxi, pledges it 'before 2027'
- At least 11 dead in Florida but Hurricane Milton not as bad as feared
- Asian markets mixed after Wall St drop, Shanghai dips before briefing
- Automaker Stellantis says CEO will retire in 2026
- Musk's promised robotaxi unveil delayed
- On US coast, wind power foes embrace 'Save the Whales' argument
- At least 10 dead in Florida after Hurricane Milton spawns tornadoes
- Internet Archive reels from 'catastrophic' cyberattack, data breach
- Wall Street stocks retreat from records on US inflation data
- Israel strikes central Beirut, killing 22
- Solar storm could impact US hurricane recovery efforts: agency
- Delta eyes Election Day travel pullback as profits climb
- Florida battered by hurricane, floods but spared 'worst-case scenario'
- UK's William and Kate in first joint public engagement since cancer treatment
- Over 200 women in legal talks with Harrods over Fayed abuse claims
- A very stiff breeze: BBC says sorry for 20,000 kph wind forecast
- Musk finally unveiling his long-promised robotaxi
- London's Frieze art fair goes potty for ceramics
- US, Europe stocks fall on US inflation data
- US consumer inflation eases to 2.4% in September
- Hurricane Milton tornadoes kill four in Florida amid rescue efforts
- South Korea's Han Kang wins literature Nobel
- Ikea posts fall in annual sales after lowering prices
- Stock markets diverge, oil gains after China rebounds
- World can't 'waste time' trading climate change blame: COP29 hosts
- South Korean same-sex couples make push for marriage equality
- Mumbai declares day of mourning for Indian industrialist Ratan Tata
- 7-Eleven owner restructures to fight takeover
- Sri Lanka recovering faster than expected: World Bank
- Hong Kong, Shanghai rally as most markets track Wall St record
- Uniqlo owner reports record annual earnings
- Hong Kong, Shanghai rally as markets track Wall St record
- Indonesia biomass drive threatens key forests: report
- Mumbai mourns Indian industrialist Ratan Tata
- China opens $71 bn 'swap facility' to boost markets
- Asian markets track Wall St record as Hong Kong, Shanghai stabilise
- 'Denying my potential': women at Japan's top university call out gender imbalance
Stocks surge on 'dovish' ECB rate hike
Stocks surged higher Thursday after the European Central Bank went ahead with a big interest rate hike despite fears of a banking crisis but took a somewhat "dovish" tone for the future.
Investors had hoped the European Central Bank would reduce the amount of its rate hike, or even pause it over fears about the health of Credit Suisse and the wider banking system following the implosions of two US lenders.
But the central bank raised its main rates by half a percentage point, as it had previously pledged to do.
It did, however, drop a reference -- used in previous statements -- to the need to raise rates "significantly" going forward.
The Frankfurt-based central bank also increased its growth forecast for 2023, to 1.0 percent, while lowering the inflation forecast to 5.3 percent for this year.
Stock markets seesawed following the ECB's announcement.
European shares, which had risen earlier on relief that troubled banking giant Credit Suisse had secured a financial lifeline, fell but then quickly rebounded.
Wall Street opened lower, only to rise later in the morning.
"Investors have viewed this as a 'dovish hike' from the ECB, as the bank indicates that it is shifting to an entirely data-dependent approach," said from Matthew Ryan, head of market strategy at global financial services firm Ebury.
Dovish in monetary policy means favouring lower interest rates to maximise growth and employment, rather than pursuing a "hawkish" policy focused on raising interest rates to reduce inflation.
The half-percentage-point "hike sends a clear signal of confidence in the strength of the European banking sector," Ryan added.
In afternoon trading, Frankfurt climbed 1.2 percent and Paris advanced 1.8 percent. London rose 0.8 percent.
The Dow edged up 0.2 percent, while the broader S&P 500 index rose 0.8 percent and the tech-heavy Nasdaq Composite climbed 1.2 percent.
The euro rose against the dollar.
A day after hitting a record low, Credit Suisse rallied after it announced that it would borrow up to $54 billion from the country's central bank.
Its shares soared more than 30 percent at the open Thursday. They were up 17.9 percent in afternoon trading.
Other European banking giants including BNP Paribas and Commerzbank were also in the green, though Societe Generale and Deutsche Bank fell.
The Dow Jones US Banks Index was up 1.2 percent, but embattled First Republic Bank was down more than 20 percent.
The ECB rate hike is the first by a major central bank since markets were rocked by banking crisis fears, testing the eurozone institution's resolve to implement another hefty increase.
There is also much debate over whether the US central bank will continue with its rate tightening campaign.
The collapse of California lender Silicon Valley Bank (SVB) has been widely linked to the sharp rise in borrowing costs over the past year.
Some commentators expect US Federal Reserve officials to lift rates once more next week but possibly hold afterwards, while there is a growing belief that it could even announce cuts before the end of the year.
But the ECB's decision will also likely impact the thinking of Fed policymakers, said Naeem Aslam, chief investment officer at Zaye Capital Markets.
"The fact that the ECB has increased the rate by 50 basis points, the chances are now that the Fed is going to do the same as well," he said.
Data out Thursday did not help ease the difficult choice faced by Fed policymakers, with the strength of the US economy confounding its efforts to quash inflation.
Weekly first-time job claims fell back below 200,000 and housing starts climbed 9.8 percent month-on-month in February, while building permit applications jumped by double digits.
But other data showed firms still had downbeat expectations about business in the coming months and import prices edged lower month-on-month in February.
- Key figures around 1515 GMT -
London - FTSE 100: UP 0.8 percent at 7,406.25 points
Frankfurt - DAX: UP 1.2 percent at 14,913.27
Paris - CAC 40: UP 1.8 percent at 7,008.54
EURO STOXX 50: UP 1.6 percent at 4,099043
New York - Dow: UP 0.2 percent at 31,942.50
Tokyo - Nikkei 225: DOWN 0.8 percent at 27,010.61 (close)
Hong Kong - Hang Seng Index: DOWN 1.7 percent at 19,203.91 (close)
Shanghai - Composite: DOWN 1.1 percent at 3,226.89 (close)
Euro/dollar: UP at $1.0603 from $1.0578
Pound/dollar: UP at $1.2091 from $1.2055
Euro/pound: DOWN at 87.68 pence from 87.71 pence
Dollar/yen: UP at 132.68 yen from 133.45 yen
West Texas Intermediate: UP 0.2 percent at $67.75 per barrel
Brent North Sea crude: UP 0.4 percent at $73.96 per barrel
burs-rl/lth
D.Philippon--CPN