European stock markets closed higher Thursday as investors in the region assessed the European Central Bank's decision to hike interest rates once again.
The ECB opted to increase rates by 25 basis points, a 10th consecutive hike taking its main rate to 4%. Ahead of the announcement, economists were divided on whether the central bank would keep rates steady or increase rates further.
The pan-European Stoxx 600 index ended 1.52% higher, building on a 0.3% uptick before the ECB announcement. The basic resources sector was up 4.2% after China's central bank announced it would cut the reserve requirement ratio on most banks by 25 basis points from Sept. 15, the latest move to gradually boost its stuttering economy.
Autos fell 0.4% as initial optimism over an EU probe into Chinese electric vehicle subsidies soured over fears of retaliatory action, and with a U.S. strike looming.
European markets
U.S. stocks opened higher Thursday, while Asia-Pacific markets mostly rose even as inflation in the U.S. inflation rate in August came in hotter than expected in the previous session.