European markets closed higher Thursday as investors weighed up the economic outlook and corporate earnings.
European markets
The Stoxx 600 index closed 0.6% higher, with most sectors and major bourses finishing in positive territory.
Industrials stocks led gains, up 1.7%. However bank Credit Suisse tumbled 15% after reporting a huge annual loss.
U.S. stocks also rose as investors took in more big corporate earnings reports, with Disney losing fewer subscribers than expected, while stocks in the Asia-Pacific closed mixed, as investors assessed risks of more interest rate hikes.
Earlier this week, Fed Chair Jerome Powell said inflation is easing, but rates could still rise. A number of Federal Reserve speakers reiterated the central bank is yet to be finished with its hiking cycle, including Fed Governor Christopher Waller, who said Wednesday that "we have farther to go" to fight inflation.
Elsewhere Wednesday, New York Fed President John Williams said that if financial conditions continue to loosen, the Federal Reserve could be forced to push interest rates higher than expected.