Berliner Boersenzeitung - Stock markets firm on ECB rate cut, corporate results

European markets advanced across the board but the euro was little changed after the ECB trimmed interest rates for the fifth time since June as inflation eases and the eurozone economy stagnates.

In New York, the S&P 500 index and the Dow were up marginally while the tech-heavy Nasdaq fell slightly.

Meanwhile, gold hit a new record on uncertainty about the economic and trade policies of President Donald Trump.

The ECB move followed the Federal Reserve's decision to keep US borrowing costs on hold Wednesday as the outlook for inflation, despite coming down, remains more elevated in the United States.

Data showed that the eurozone economy was flat in the fourth-quarter with France and Germany contracting slightly, Italy unchanged, and only Spain showing healthy growth among the bloc's largest economies.

By contrast, the US economy grew at an annual rate of 2.3 percent in the fourth quarter, the Commerce Department reported, in line with the consensus forecast.

Even so, that report disappointed some investors because the growth rate was below expectations, stalling a recent dollar rally.

"There are positives to glean about the US economic landscape," said Bret Kenwell, an analyst at eToro. "The economy continues to grow, while the labor market remains on solid footing."

The ECB cut its rate by a quarter point to 2.75 percent while the Fed kept its benchmark lending rate at between 4.25 percent and 4.50 percent.

"There is really no reason to think the ECB won't continue to cut rates, at least to a neutral level, and we think quite probably below neutral by year-end," said Deutsche Bank's European economist Mark Wall.

While the ECB is set to keep cutting rates, Fed chairman Jerome Powell said Wednesday that the US central bank was in no "hurry" to adjust its borrowing costs again.

US President Donald Trump, who last week called for rates to "drop immediately", accused policymakers of failing "to stop the problem they created with inflation".

Powell refused to comment on the US leader's criticism of the Fed but said decision-makers would "wait and see" how Trump's plans to impose tariffs, and cut taxes, regulations and immigration would affect the economy.

- Eyes on companies -

Traders also focused on a slew of corporate earnings.

Facebook parent Meta on Wednesday reported surging profits for 2024 and announced ambitious plans to expand its artificial intelligence infrastructure in the year ahead. Its shares were up almost two percent.

Elon Musk's electric car firm Tesla reported lower-than-expected profits but confirmed key 2025 benchmarks. Its shares initially rose almost five percent but were last up around two percent.

IBM was up almost 13 percent, also on positive guidance.

Microsoft reported large profits, but its shares slid more than six percent on worries over its vital cloud computing business.

Apple is expected to report strong results after the market closes.

The price of gold hit a new record Thursday at just over $2,791 an ounce, lifted by uncertainty over Trump's economic and policies, and the dollar's weakness following the disappointing growth report.

Earlier, Asian stock markets closed mixed in holiday-thinned trading.

- Key figures around 1640 GMT -

New York - Dow: UP 0.2 percent at 44,821.63 points

New York - S&P 500: UP 0.2 percent at 6,051.44

New York - Nasdaq Composite: DOWN 0.2 percent at 19,595.06

London - FTSE 100: UP 1.0 percent at 8,646.88 (close)

Paris - CAC 40: UP 0.9 percent at 7,941.64 (close)

Frankfurt - DAX: UP 0.4 percent at 21,727.20 (close)

Tokyo - Nikkei 225: UP 0.3 percent at 39,513.97 (close)

Hong Kong - Hang Seng Index: Closed for a holiday

Shanghai - Composite: Closed for a holiday

Euro/dollar: FLAT at $1.0424

Pound/dollar: UP at $1.2461 from $1.2444 Wednesday

Dollar/yen: DOWN at 154.35 yen from 155.15 yen

Euro/pound: DOWN at 83.66 pence from 83.68 pence

West Texas Intermediate: UP 0.8 percent at $73.19 per barrel

Brent North Sea Crude: UP 0.8 percent at $77.21 per barrel

(F.Schuster--BBZ)