Attention is now on the European Central Bank (ECB) and the Bank of England (BOE), and the expected course of interest rates taken by those two.

After Federal Reserve Chair Jerome Powell said a "disinflationary" process was underway, Asian markets rose on Thursday while the dollar fell. This increased risk appetite as investors hoped the rise in U.S. interest rates would soon come to a stop.

German DAX futures were up 0.7%, while FTSE futures were up 0.4%, indicating that European equities were expected to keep rising.

After a year of higher increases, the U.S. Federal Reserve announced an anticipated 25 basis point rise in interest rates and claimed to have made significant progress against excessive inflation. But officials anticipated that there would still be a need for "ongoing rises" in borrowing costs.

Nevertheless, Powell's remarks at a press conference about the "disinflationary" process taking place gave the market a dovish message. The S&P 500 and the Nasdaq closed significantly higher overnight as a result.

Expectations of a "soft landing," or a scenario in which inflation eases against a backdrop of slowing but steady economic growth, have increased in response to the potential of a less aggressive pace in monetary tightening.

In spite of highly aggressive interest rate increases, Powell stated on Wednesday that his aspirations for a gentle landing in the economy are still alive.

Now, attention will shift to Thursday's meetings of the European Central Bank (ECB) and the Bank of England (BOE) and the expected course of interest rates taken by those two institutions.

In the business sector, 2023 has been dubbed the "Year of Efficiency" by Meta Platforms CEO Mark Zuckerberg, who also announced fresh $40 billion share buybacks and tighter cost controls this year.

Nasdaq futures gained 1% following market trade as Meta stock jumped. The focus will be on Apple Alphabet and Amazon's results later on Thursday.

Following Powell's comments, the dollar plunged on the currency market. The U.S. dollar index, which compares the greenback to six major rivals, hit a new nine-month low.

(Investing.com, Reuters.com)