European stock markets rise amid ECB decision and Alphabet results

European equity markets closed higher following the European Central Bank's decision to maintain interest rates and encouraging corporate earnings. The CAC 40 in Paris rose 1.05%, the DAX in Frankfurt increased by 1.31%, and the FTSE 100 in London gained 0.26%. The STOXX 600 index saw a rise of 0.77%.

The ECB acknowledged inflation risks related to energy prices but emphasized that future rate decisions will depend on economic data rather than a predetermined path. This follows a similar decision by the US Federal Reserve to keep borrowing costs unchanged.

Despite the broader market gains, Alphabet shares fell by more than 10% after reporting a decline in free cash flow for the third quarter. The company reported a net income of $26.17 billion, down from $34.98 billion a year prior. Alphabet also reported a negative free cash flow of $9.07 billion, which was significantly lower than the $2.70 billion expected by analysts. Capital expenditures reached $51.36 billion in the third quarter as the company continues to invest heavily in artificial intelligence infrastructure.