Portugal Colonial - European stocks rise after surprise Swiss rate cut

The Swiss National Bank surprised markets with a 50-basis-point reduction in its rate, citing slowing inflation and "uncertainty" over the global economy due to future US policies and political turmoil in Europe.

The franc fell against the dollar and the euro following the announcement.

The European Central Bank (ECB) is widely expected to cut its interest rates by 25 basis points, marking its third consecutive reduction.

However, recent worse-than-expected data has fuelled speculation that the ECB could soon deliver its own half-percentage-point cut.

The decision comes "in the face of a eurozone economy which is teetering on the brink of a recession", said Dan Coatsworth, investment analyst at AJ Bell.

"The rumbling political crises in France and Germany only add to the tricky backdrop," he added.

Paris stocks edged up slightly, as France's President Emmanuel Macron fights to appoint a new prime minister following the removal of Michel Barnier last week.

Germany, meanwhile, is heading towards early elections in February following the collapse of Chancellor Olaf Scholz's coalition government as Europe's biggest economy falters.

Investors are also focused on the US Federal Reserve's own interest rate decision next week, with inflation data on Wednesday cemeting forecasts of another cut.

On Wall Street on Wednesday, the Nasdaq ended above 20,000 points for the first time, while the S&P 500 was a whisker away from its own record.

"US markets had their best day since the election, with tech stocks stealing the spotlight after inflation data practically locked in a rate cut," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

There are concerns, however, that measures pledged by US president-elect Donald Trump to slash taxes and regulations and ramp up tariffs could reignite price increase.

In Asia, Hong Kong and Shanghai rallied amid hopes that leaders in China will unveil more help for the economy, which is struggling under the weight of weak consumer spending and a chronic property crisis.

President Xi Jinping and other key officials were reportedly holding their Central Economic Work Conference to hash out plans to boost growth next year.

Meanwhile, it emerged that economic officials in outgoing US President Joe Biden's administration would meet their Chinese counterparts for talks on Thursday in a final effort to strengthen ties before Trump returns.

Tokyo gained more than one percent on a weaker yen.

Seoul's Kospi pushed higher for a third straight day, eating further into the losses sustained in a sell-off that came in the wake of South Korean President Yoon Suk Yeol's short-lived martial law declaration.

The won continues to hover around two-year lows of 1,430 per dollar amid the uncertainty ahead of a second impeachment vote on Yoon at the weekend after the first fell short.

- Key figures around 1100 GMT -

London - FTSE 100: UP 0.3 at 8,324.23 points

Paris - CAC 40: UP 0.1 percent at 7,429.12

Frankfurt - DAX: UP 0.1 percent at 20,409.61

Tokyo - Nikkei 225: UP 1.2 percent at 39,849.14 (close)

Hong Kong - Hang Seng Index: UP 1.2 percent at 20,397.05 (close)

Shanghai - Composite: UP 0.9 percent at 3,461.50 (close)

New York - Dow: DOWN 0.2 percent at 44,148.56 (close)

Euro/dollar: UP at $1.0500 from $1.0498 on Wednesday

Pound/dollar: DOWN at $1.2743 from $1.2752

Dollar/yen: DOWN at 152.33 yen from 152.40 yen

Euro/pound: UP at 82.40 from 82.31 pence

West Texas Intermediate: DOWN 0.1 percent at $70.24 per barrel

Brent North Sea Crude: DOWN 0.1 percent at $73.46 per barrel

S.Pimentel--PC