European stock markets open higher after central bank's historic rate hike

By Aysu Bicer

ANKARA (AA) - All major European stocks opened Friday higher following the European Central Bank's historic rate decision of hiking its three key rates by 75 basis points.

This comes as eurozone inflation faces a record high amid a war-driven energy crisis, creating new risks for the entire region.

The interest rate on the main refinancing operations, the marginal lending facility and the deposit facility were increased to 1.25%, 1.50%, and 0.75%, respectively.

July was the first time in over a decade that the bank raised rates by 50 basis points as annual inflation in the euro area spiked to 8.6% in June, far above the ECB's 2% target.

The STOXX Europe 600, which includes around 90% of the market capitalization of the European market in 17 countries, increased by 0.43% to 415.8 points, while Germany's DAX 40 index gained 0.38% to 12,954 points.

The UK's FTSE 100 index rose 0.61% to 7,306 points, while Spain's IBEX 35 index was up by 0.68% to 7,971 points.

France's CAC 40 index also increased by 0.39% to 6,150 points.

The euro/dollar parity, which closed the day at 0.9999 with a decrease of 0.1% Thursday, is currently trading at 1.0080, 0.8% above its previous closing.