European markets close 1.4% higher as European Central Bank and Bank of England hike interest rates

Bank of England Governor Andrew Bailey suggested the central bank is not "done" with interest rate hikes in an interview with CNBC.

"I'm not saying that this is it, we're done, because the world is too uncertain at the moment," he told CNBC's Joumanna Bercetche.

The Bank of England voted for a second consecutive 50 basis point hike Thursday, bringing the policy rate to a 14-year high of 4%.

Full coverage of the interview can be found here.

— Hannah Ward-Glenton

The European Central Bank announced it would raise its interest rate by 50 basis points, bringing its policy rate to 2.5%.

The pan-European 600 index reacted by jumping from a 0.5% daily increase to 0.9% in the 15 minutes following the announcement.

The rate hike was in line with expectations and follows four increases in 2022.

Full coverage of the ECB's decision can be found here.

— Hannah Ward-Glenton

Italian luxury carmaker Ferrari reported a 16% year-on-year increase in core adjusted earnings for 2022, signaling an "even stronger" year to come.

The company said its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) reached 1.77 billion euros ($1.95 billion) last year, setting a 2.13-2.18 billion euro guidance for 2023.

Ferrari achieved EBITDA of 469 million euros in the fourth quarter, up by 18% on the year — beating analyst expectations nearer to 449 million euros, according to a Reuters poll.

Car shipments added 19% on the year to 13,221 units in 2022, driven up by deliveries of the Ferrari Portofino M and the SF90 family, alongside the 296 GTB and the 812 Competizione models, which were in the ramp-up phase.

"These figures provide the base for an even stronger 2023, fuelled by a persistently high demand for our products worldwide," said Ferrari CEO Benedetto Vigna.

New York-listed shares of the company rose by 2.63% in after-hours trade by 12:46 a.m. London time.

— Ruxandra Iordache

The Bank of England on Thursday hiked interest rates by 50 basis points and dialed back some of its previous bleak economic forecasts.

The Monetary Policy Committee voted 7-2 in favor of a second consecutive half-point rate hike, taking the main Bank rate to 4%, but indicated in its decision statement that smaller hikes of 25 basis points may be in the cards in coming meetings. The two dissenting members voted to leave rates unchanged.

Crucially, the Bank also dropped the word "forcefully" from its rhetoric around continuing to raise rates as necessary to rein in inflation.

The U.K.'s FTSE 100 index was up 0.5% after the announcement, extending earlier gains.

Read the full story here.

— Elliott Smith

Tanate Phutrakul, chief financial officer of ING, discusses its better than expected fourth-quarter net profit.

Telecom Italia shot to the top of European stocks in early trade, rising 11% following reports U.S. private equity firm KKR & Co Inc was preparing to make a nonbinding offer for its fixed-line network.

The network provides key support to the struggling company's massive debt load, Reuters reported.

Meanwhile, Electrolux dropped 8.5% after warning it would see lower sales this year and may suffer on higher energy and labor costs.

— Jenni Reid

Europe's Stoxx 600 was 0.5% higher at the open as investors prepared for interest rate hike decisions from the Bank of England and the European Central Bank this afternoon.

That follows declines in the last three sessions. After the European close Wednesday, the U.S. Federal Reserve announced a smaller 25 basis point rate increase — but gave few hints its hiking cycle was coming to an end.

Germany's DAX climbed 0.65%, France's CAC 40 was up 0.6% and the U.K.'s FTSE 100 was up 0.2%.

— Jenni Reid

Deutsche Bank reported its 10th straight quarter of profit, receiving a boost from higher interest rates and favorable market conditions.

The German lender reported a 1.8 billion euro ($1.98 billion) net profit attributable to shareholders for the fourth quarter, bringing its annual net income for 2022 to 5 billion euros, a 159% increase from the previous year.

It almost doubled a consensus estimate among analysts polled by Reuters of 910.93 million euro net profit for the fourth quarter, and exceeded a projection of 4.29 billion euros on the year.

Read the full story here.

— Elliot Smith

JPMorgan has named five stocks to own amid an expected rise in the broader Chinese stock market in February.

Strategists at the Wall Street bank attributed last week's sell-off in Hong Kong-listed shares as profit-taking by some investors.

They said the wider stock market will be "grinding higher" this month but rotate into "quality laggards in consumption as well as value cyclical and growth spaces."

CNBC Pro subscribers can read more about the 5 stocks JPMorgan has named.

— Ganesh Rao

Forget growth stocks like tech. Analysts are recommending that investors go for companies with lots of cash.

The market rallied in January — including the tech-heavy Nasdaq Composite, which rose nearly 10.7% last month for its best monthly performance since July.

But analysts say companies with pricing power are a safer bet than tech, given that inflation is expected to stay high this year and the uncertainty around when the U.S. Federal Reserve will pivot to lower interest rates.

They named three stocks to buy.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Shares in Alibaba have enjoyed a strong rebound this year, though a recent slump in its share price has got some investors worried.

But the Wall Street favorite is far from the only game in town, with several stocks also offering exposure to the Chinese Internet sector.

Pro subscribers can read more here.

— Zavier Ong

European markets are expected to open in mixed territory Monday.

The U.K.'s FTSE 100 index is expected to open 15 points lower at 8,422, Germany's DAX up 23 points at 18,781, France's CAC 8 points higher at 8,201 and Italy's FTSE MIB up 15 points at 34,332, according to data from IG.

Earnings are due from Ferrovial. There are no major data releases.

— Holly Ellyatt