European stocks rise as ECB and Fed hold rates steady

European stocks rallied Thursday after both the European Central Bank and US Federal Reserve held interest rates steady, with London's FTSE 100 closing up 0.3% at 10,722.07. The ECB maintained its deposit rate at 2.50% while warning rising energy prices could push inflation higher. ECB President Christine Lagarde announced her departure, setting up a leadership contest, while JPMorgan analysts said a December rate hike remains likely. In the US, Fed Chair Kevin Warsh defended the hold despite accelerating inflation, as September core PCE inflation rose 3.1% year-on-year. Supporting markets were easing oil prices amid renewed US-Iran diplomatic efforts, with Brent falling to $113.75 a barrel. Alphabet slumped 12% on weak earnings, while Shell gained 2.1% on better-than-expected results and Haleon fell 15% after cutting guidance.