[1/2]U.S. Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration
LONDON, July 27 (Reuters) – European stocks hit a 17-month high, bond prices rose and the euro dipped on Thursday after the European Central Bank raised rates by 25 basis points as expected, while a policy tweak caused European banking stocks to fall.
U.S. data, released at a similar time, showed the world’s largest economy grew faster than expected in the second quarter, which was also a major driver for markets.
Europe’s broad STOXX 600 index (.STOXX) was last up 1.3% at its highest since Feb 2022, though the euro zone banking index (.SX7E) gave back initial gains and was last up 0.5% after the ECB cut the interest rate it pays to banks on their minimum reserves to zero.
The euro was last 0.3% lower at $1.10535 and Germany’s 10-year bond yield, the regional benchmark, was 5 basis points lower at 2.4%. Bond yields move inversely to prices.
Reporting by Alun John, editing by Amanda Cooper
Our Standards: The Thomson Reuters Trust Principles.
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