Europe: Stocks rally at open on easing Fed concerns

EUROPEAN stocks rose sharply at the open on Thursday (May 5) after strong gains elsewhere as the Federal Reserve downplayed concerns over aggressive interest rate hikes to tackle soaring inflation.

London's benchmark FTSE 100 index jumped 1.6 per cent to 7,611.14 points.

In the eurozone, Frankfurt's DAX index soared 2.3 per cent to 14,291.69 points and the Paris CAC rallied 2.4 per cent to 6,547.67.

Asian stock markets and Wall Street surged overnight after the Fed played down chances of a huge US rate hike in the near future.

The US central bank on Wednesday announced an expected half-point lift in borrowing costs -- the biggest since 2000.

However, traders were given some much-needed cheer when Fed boss Jerome Powell said a 75 basis-point rise, which had been flagged by many observers, was not "not something the committee is actively considering".

In London, the Bank of England was on Thursday expected to hike its main interest rate for a fourth straight meeting as UK inflation sits at the highest level in 30 years. AFP