European markets rise following Federal Reserve rate hike

European stock markets opened higher following a Federal Reserve interest rate hike. Major indices, including the Euro Stoxx 50 and Stoxx 600, rose by over 0.6%, while the UK’s FTSE 100 saw gains exceeding 1%. In France, Renault and Stellantis led gains in the CAC 40, whereas technology stocks like Dassault Systèmes experienced declines.

The US dollar reached a seven-week high against major currencies, driven by rising short-dated Treasury yields. While a stronger dollar may improve the competitiveness of European exports, it also increases the cost of dollar-priced commodities such as oil and gas, potentially impacting European energy costs.