- SpaceX set to launch mission to return stranded astronauts
- Storm Helene kills 44, threatens more 'catastrophic' flooding
- Boeing strike grinds on as latest talks fail to reach agreement
- Iran 'news' sites, hackers target Trump ahead of US election
- US ports brace for potential dockworkers strike
- Japan's speedy, spotless Shinkansen bullet trains turn 60
- US hurricane deaths rise to 44, fears of more 'catastrophic' flooding
- Global stocks mostly rise, cheering Beijing stimulus
- Europe en route for Moon with new simulator, says astronaut Pesquet
- Fireworks forecast if comet survives risky Sun flypast
- Argentina judge orders dictionary to delete pejorative definition of 'Jewish'
- Global stocks rise on rate hopes, Beijing stimulus
- S.African woman turns 118, among the oldest in the world
- UK clears $4 bn AI partnership between Amazon, Anthropic
- Barca fans barred from Champions League away game over racist banner
- Chinese stocks extend surge, Europe higher on Beijing stimulus
- Pope says Church must 'seek forgiveness' for child sexual abuse
- China caps week of 'bazooka' stimulus for ailing economy with rate cut
- Cuts, cash, credit: China bids to jumpstart flagging economy
- France's debt weighs heavier ahead of budget debate
- Iran treads carefully, backing Hezbollah while avoiding war
- Return to sender: waste stranded at sea stirs toxic dispute
- 'Broken' news industry faces uncertain future
- On remote Greek island, migratory birds offer climate clues
- Taken from mother by nuns, victim seeks answers as pope visits Belgium
- China cuts amount banks hold in reserve to boost lending
- Hong Kong, Shanghai extend surge as China optimism boosts markets
- Vietnam president reiterates support for Cuba during official visit
- Drought reduces Amazon River in Colombia by as much as 90%: report
- Stay or go? Pacific Islanders face climate's grim choice
- Florida bracing for 'unsurvivable' Hurricane Helene
- Poverty rises to over 52 percent in Milei's Argentina
- Chloe's see-through look may not be for Kamala Harris
- Champagne houses abuzz over English sparkling wine
- Macron, Trudeau pledge to work for 'decarbonized' economies
- Hurricanes, storms, typhoons... Is September wetter than usual?
- China stimulus, tech optimism boost stock markets
- 'Unsurvivable' Hurricane Helene races towards Florida
- Macron meets Trudeau in Canada as both face political setbacks
- South Korea surges in UN innovation index
- Chloe's see-through look may not be for Kamala
- Floods threaten Niger's historic 'gateway to the desert'
- China economy hopes boost global equities
- Ubisoft shares sink after 'Assassin's Creed' delay
- German economy to shrink again in 2024: think tanks
- Hong Kong's New World Development replaces CEO Adrian Cheng
- Swiss central bank cuts rate again amid strong franc worries
- Germany's BASF to focus on 'core units' in major overhaul
- China admits economy facing new 'problems', vows to fix property sector
- Stock markets boosted by China hopes, tech rally
Stocks rebound as US economy posts decades-high growth
US and European stock markets rose on Thursday as investors put aside rate hike fears and focused on data showing the US economy grew at its fastest pace in decades last year.
European equity markets had mostly retreated in the morning session following sharp losses in Asia after US Federal Reserve chief Jerome Powell signalled Wednesday a likely rate increase in March to tame inflation.
But the mood changed after the US Commerce Department released Thursday data showing that the economy grew by 5.7 percent in 2021, its fastest rate since 1984.
Solid corporate earnings reports also helped this week, with several leading companies scoring higher profits despite ongoing pressures connected to Covid-19.
On Wall Street, the Dow Jones index was up 1.4 percent in late morning trading.
In Europe, London overturned earlier losses to close 1.1 percent higher. Paris and Frankfurt likewise overcame early sluggishness to post modest gains by the close.
Oil prices lost momentum mid-session after Brent North Sea crude had closed in on $91 per barrel.
Despite major markets moving back into the green, AJ Bell investment director Russ Mould sounded a note of caution regarding Powell's assessment.
"It's what he didn't say that troubled investors," Mould said.
"The key concerns are how aggressive the Fed will be with raising rates -- will they go up at every meeting this year, and will they go up by more than 0.25 percentage points each time?"
"Powell effectively admitted the Fed has been behind the curve and now must get its act together to get inflation to more acceptable levels. If that means upsetting financial markets, then so be it," said Fawad Razaqzada, market analyst with ThinkMarkets.
Fed officials still believe the price rises will be brought under control as economies reopen and supply chain problems abate, but the need to prevent them from running away is forcing them into an aggressive pivot.
"The tech-heavy Nasdaq had been hit hard by fears of a more hawkish Fed in the lead-up to the US central bank's rate decision, making this a case of 'sell the rumour, buy the fact'," said Fiona Cincotta, senior financial markets analyst at City Index, while noting "stellar" US growth data.
- Oil back under $90 -
Elsewhere, oil prices lost early momentum after benchmark European contract Brent closed in on $91 a barrel.
It fell back under $90, having risen on Wednesday above that level for the first time in seven years owing to rising Ukraine-Russia tensions and falling US crude stockpiles.
Eyes are now on the upcoming meeting of OPEC and other key producers, where they will discuss plans to continue to increase output.
"Energy traders are anticipating higher energy prices on potential geopolitical risks and as OPEC+ will stick to their plan to deliver another modest increase to production at next week's meeting," said OANDA's Edward Moya.
- Key figures around 1650 GMT -
New York - Dow: UP 1.4 percent at 34,653.06 points
EURO STOXX 50: UP 0.3 percent at 4,177.50
London - FTSE 100: UP 1.1 percent at 7,554.31 (close)
Paris - CAC 40: UP 0.6 percent at 7,023.80 (close)
Frankfurt - DAX: UP 0.4 percent at 15,524.27 (close)
Tokyo - Nikkei 225: DOWN 3.1 percent at 26,170.30 (close)
Hong Kong - Hang Seng Index: DOWN 2.0 percent at 23,807.00 (close)
Shanghai - Composite: DOWN 1.8 percent at 3,394.25 (close)
Euro/dollar: DOWN at $1.1152 from $1.1238 late Wednesday
Pound/dollar: DOWN at $1.3394 from $1.3458
Euro/pound: UP at 83.26 pence from 83.45 pence
Dollar/yen: UP at 115.42 yen from 114.64 yen
Brent North Sea crude: DOWN 0.2 percent at $89.74 per barrel
West Texas Intermediate: DOWN 0.2 percent at $87.15 per barrel
burs-cdw/rl
D.Avraham--CPN