European markets higher as traders digest ECB rate hike

European stock markets were higher Friday as investors digested the latest monetary policy decision from the European Central Bank. The pan-European Stoxx 600 index was up 0.5% in morning trading, with most sectors in marginally positive territory. Utilities stocks led minor gains with a 1% uptick, followed by travel and leisure, which was up 0.9%. Mining stocks saw a 0.3% downturn. The ECB opted to raise its benchmark policy rate by a further 25 basis points. In a press briefing following the decision, ECB President Christine Lagarde said: “We are not thinking about pausing.” “Are we done? Have we finished the journey? No, we are not at [the] destination,” she added, indicating at least one more rate increase in July. While the ECB opted for more fiscal tightening, the Federal Reserve decided Wednesday to hold off on a rate hike, but said there would be two quarter-percentage point moves before the end of the year. U.S. stock futures inched lower Thursday night as investors shifted focus from the Federal Reserve policy meeting earlier in the week to consumer sentiment data released Friday, while Asia-Pacific markets were higher as the Bank of Japan again left its benchmark interest rate unchanged at -0.1%.