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European markets close higher after record ECB rate hike; Bank of England postpones meeting

Karen Gilchrist
Katrina Bishop

European markets closed higher Friday, as investors reacted to a record rate hike by the European Central Bank and further comments from Federal Reserve Chair Jerome Powell.

The pan-European Stoxx 600 provisionally ended up 1.6%, with all sectors and major bourses in positive territory. Mining stocks were 3.2% higher to lead gains, while tech stocks were up 2.7%.

European markets


On Thursday, the European Central Bank announced a 75 basis point interest rate rise, taking its benchmark deposit rate to 0.75%. The bank also revised up its inflation expectations — to an average of 8.1% in 2022 — and said it expects to hike rates further as "inflation remains far too high and is likely to stay above target for an extended period."

Meanwhile, the Fed's Powell said Thursday that the U.S. central bank will raise rates to tackle inflation "until the job is done."

"History cautions strongly against prematurely loosening policy," 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 strongly committed to this project and we will keep at it until the job is done."

Markets in Asia-Pacific were higher as investors digested the slew of central bank news, and U.S. stock futures were also in positive territory.

Meanwhile, world leaders offered tributes to Queen Elizabeth II, after Britain's longest-serving monarch died Thursday at age 96.

The Bank of England on Friday said it would postpone its September Monetary Policy Committee meeting by a week as the country enters a period of national mourning.

Bank of England delays policy meeting following queen's death

The Bank of England on Friday said it would postpone its September Monetary Policy Committee meeting by one week following the death of Queen Elizabeth II.

The U.K. is in a period of national mourning after the passing of the queen, Britain's longest-serving monarch, who died at Balmoral Castle Thursday.

The Committee's decision will now be announced at 12pm local time on Sept. 22.

— Karen Gilchrist

British pound rises to $1.16

Sterling moved higher against the dollar Friday, regaining steam amid a tumultuous week during which the pound hit a 37-year low, Britain appointed a new prime minister and Queen Elizabeth II passed away.

The pound rose more than 1% to trade at $1.1646, its highest level this month, while the greenback slipped following comments from the U.S. Federal Reserve. It was last seen trading at $1.606.

Sterling's moves against the euro were more muted, with the single currency just slightly lower at 86.77 pence.

— Karen Gilchrist

Uniper up 9.6%; Bridgepoint plunges 18.5%

Shares in German energy giant Uniper jumped to the top of the Stoxx 600 Friday, rising 9.6%, amid a broader uptick in oil & gas stocks.

British private equity company Bridgepoint, meanwhile, plunged 18.5% to hit the bottom of the European benchmark following news that it is to take a majority stake in U.K.-based adtech company MiQ.

— Karen Gilchrist

European markets rise at the open; Euro Stoxx 600 up 0.6%

European markets moved higher at the open. Here's how they're trading now:

European markets


— Katrina Bishop

CNBC Pro: Uranium is 'on a tear' right now. Here are two ETFs to play it

One niche area of the commodity market — uranium — has been a bright spot over the past month, with its performance outpacing even that of the broader energy sector.

Two ETFs have surged in recent weeks, as the West scrambles to reduce its reliance on Russian energy.

Pro subscribers can read more here.

— Weizhen Tan

Asian markets rise Friday

Asian markets are in the green as traders digest comment from Powell that the Fed will raise rates to tackle inflation "until the job is done."

Here's how markets are trading:


— Katrina Bishop

European markets expected to open higher: Here are the calls

Here are the opening calls from IG:

  • London's FTSE is seen opening 23 points higher at 7283
  • Germany's DAX is seen 6 points higher at 12906
  • France's CAC 40 is seen 4 points higher at 6125
  • Italy's FTSE MIB is seen 66 points higher at 21700

— Katrina Bishop

CNBC Pro: Citi just upgraded eight Chinese stocks

China's "economic recovery looks to be slower than market expectations," Citi's stock analysts said in a Sept. 2 report.

They downgraded 12 China stocks — but upgraded eight. Here are three stocks from their updated list of top Hong Kong and mainland-traded Chinese stocks to buy.

Pro subscribers can read more here.

— Evelyn Cheng

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European Central Bank raises rates by 75 basis points to tackle soaring inflation

The European Central Bank on Thursday announced a 75 basis point interest rate rise, taking its benchmark deposit rate to 0.75%.

"This major step frontloads the transition from the prevailing highly accommodative level of policy rates towards levels that will ensure the timely return of inflation to the ECB's 2% medium-term target," it said in a statement.

It added it "expects to raise interest rates further, because inflation remains far too high and is likely to stay above target for an extended period."

Read the whole story here: European Central Bank raises rates by 75 basis points to tackle soaring inflation

— Jenni Reid