European stock markets closed high this Thursday the 16th after the market interpreted that the European BC could be more lenient in the next monetary policy decision following today’s rate hike. Business was helped by the speech of ECB President Christine Lagarde about the absence of a liquidity crisis in banking institutions and the news that Credit Suisse accepted a bailout from Swiss BC after yesterday’s turbulence.

In London, the FTSE 100 closed up 0.89% to 7,410.03 and the DAX in Frankfurt closed up 1.57% to 14,967.10. The CAC 40 in Paris rose 2.03% to 7,025.72, while the FTSE MIB in Milan closed up 1.38% to 25,918.76. In Madrid, the Ibex 35 rose 1.50% to 8,890.20. Finally, on the Lisbon Stock Exchange, the PSI 20 rose 0.91% to 5,865.99 points.

European markets lost steam after the decision of the ECB to raise interest rates by half a percentage point, as previously indicated. However, the indexes accelerated during the Lagarde press conference, which signaled that there was no liquidity crisis in European banks, but that the ECB would be ready to act if necessary. The President also reaffirmed her commitment to maintaining price stability in the eurozone.

The ECB is expected to take a more dovish stance in the coming months, according to Dutch bank ING, as there are still fears of new turbulences like the one Credit Suisse saw yesterday. Last night, a Swiss bank agreed to receive a bailout from the Swiss Central Bank, which also helped strengthen the markets. Shares of Credit Suisse rose more than 19% in response to the news.

Other European banks also strengthened today, such as Lloyds Banking, which rose more than 3% in London, and BNP Paribas, which rose more than 1% in Paris.