The interest rate decision by the US Federal Reserve has fueled hopes of a slightly less tight monetary policy on the German stock market.

The FAZ index rose by 1.6 percent to 2473 points and thus to the highest level since last April.

The Dax was up 1.5 percent at 15,415 points, reaching its highest level in almost a year.

As expected, the Fed raised its key interest rate by 0.25 percentage points and held out the prospect of further monetary tightening.

In New York, the S&P 500 jumped from 4040 to 4149 the night before and closed around 1 percent higher at 4119 points.

The Nasdaq 100 technology stock index rose more than 2 percent to 12,363 jobs, also supported by better-than-expected business figures from the social media group Meta, whose share price then rose by 20 percent in after-hours trading.

In the further course of Thursday, eyes are now primarily on the European Central Bank (ECB), which, like the Bank of England, will announce its interest rate decision in the afternoon.

Many bank economists expect their key interest rates to rise by a further 0.5 percentage points.

The bond and currency markets are less euphoric.

The yield on the ten-year federal bond fell from 2.29 to 2.23 percent at the start of trading, but then sales began and the yield rose again to 2.65 percent.

The euro initially appreciated the previous evening from less than $1.09 to $1.1033, but is currently only trading at $1.098.

It wasn't so much the rate move as the statement that followed that got markets moving, says Laura Frost, investment director on M&G's bonds team.

The central bank has not been so relaxed since 2018/19.

It is clear that the end of the rate hike cycle is nearing.

While Chairman Powell said the Fed needed "much more evidence that inflation is coming down on a sustainable basis," he did not further question the possibility of 50 basis point rate cuts towards the end of 2023.

Jason Greenblath, head of corporate credit research at American Century Investments, disagrees.

He expects two more interest rate hikes up to 5.00 to 5.25 percent.

Once the Fed reaches that terminal rate, it must maintain that high level in order to keep inflation under control.

Powell stressed that there is still work to be done and that there is still a long way to go and it is very premature to announce victory.

The labor market is still very tight and consumers are still in a strong position.

The probability of a recession is about 60 percent and it is likely to occur in the second half of the year.

However, valuations across asset classes do not reflect a recession scenario.

Deutsche Bank's share price fell 2 percent.

Analyst Anke Reingen from the Canadian bank RBC spoke of "mixed results".

While the bank made its highest profit in 15 years in 2022, it also benefited from a positive tax effect.

The share price of DWS, the fund company of Deutsche Bank, fell by more than 5 percent after the presentation of quarterly figures.

The course of the chip company Infineon increases by more than 7 percent.

The company feeds on robust demand from the energy transition and electromobility.

Shares in the semiconductor group Siltronic also gained around 7 percent in value.

The wafer maker grew strongly in 2022 and gave a "decent" outlook for 2023, according to traders.

The increase in Siemens Healthineers shares is also 7 percent.

Investors were particularly impressed by the outlook.

Real estate shares also posted significant price gains.

The cautious tendency that interest rates may not be raised as much in the future and that there could even be a pause in interest rate hikes or interest rate cuts is providing a boost, according to traders.

Aroundtown and TAG Immobilien gained around 6 percent, Vonovia almost 5 percent.