Global Market: European shares edge higher ahead of ECB rate decision
European shares edged higher after their sharpest one-day decline in two months, as investors awaited an expected ECB rate hike and Christine Lagarde’s comments on inflation. Rising oil prices above $100 a barrel remained a key concern for markets.
By Anupam Nagar, ETMarkets.com | Updated:
ETMarkets.com
European shares steady as markets await ECB decision.
European shares edged higher on Thursday after suffering their biggest one-day decline in two months, as investors awaited a widely expected interest rate hike from the European Central Bank and looked for clues from ECB President Christine Lagarde on the inflationary impact of soaring oil prices.
Read more: Global Market: Samsung, SK Hynix payouts put South Korea’s corporate reform to the test
The pan-European STOXX 600 index was up 0.1% at 641.23 points as of 0708 GMT. Germany's DAX was broadly flat, while London's FTSE 100 gained 0.1% and France's CAC 40 advanced 0.3%.
European stocks tumbled 1.4% in the previous session after Brent crude prices climbed above $100 a barrel for the first time since July. The surge in oil prices heightened concerns over inflation and strengthened expectations that central banks could be forced to maintain restrictive monetary policy for longer.
Read more: Global Market: South Korean stocks fall over 1% as Middle East tensions weigh on risk sentiment
Brent crude remained above the $100-a-barrel threshold on Thursday after Iran and the United States launched their largest wave of attacks on shipping since the conflict began six months ago, adding to concerns over energy supplies and inflation.
The ECB is widely expected to raise its benchmark interest rate by 25 basis points later on Thursday. Investors will closely monitor Lagarde's assessment of the inflation outlook, particularly the potential impact of higher energy prices, Reuters reported.
The ECB decision marks the start of a busy period for global central banks, with the U.S. Federal Reserve and the Bank of Japan scheduled to announce their policy decisions next week.
In individual stocks, Associated British Foods fell 8.6% after the company said like-for-like sales at its Primark retail business were expected to decline 3% in its fourth-quarter period ending September 12.
The weakness in European equities comes as investors weigh the prospect of prolonged monetary policy tightening against the resilience of corporate earnings and economic activity. Higher energy costs remain a key risk to the outlook, particularly if elevated oil prices persist.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times.)
Read more: Global Market: Samsung, SK Hynix payouts put South Korea’s corporate reform to the test
The pan-European STOXX 600 index was up 0.1% at 641.23 points as of 0708 GMT. Germany's DAX was broadly flat, while London's FTSE 100 gained 0.1% and France's CAC 40 advanced 0.3%.
European stocks tumbled 1.4% in the previous session after Brent crude prices climbed above $100 a barrel for the first time since July. The surge in oil prices heightened concerns over inflation and strengthened expectations that central banks could be forced to maintain restrictive monetary policy for longer.
Read more: Global Market: South Korean stocks fall over 1% as Middle East tensions weigh on risk sentiment
Brent crude remained above the $100-a-barrel threshold on Thursday after Iran and the United States launched their largest wave of attacks on shipping since the conflict began six months ago, adding to concerns over energy supplies and inflation.
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The ECB is widely expected to raise its benchmark interest rate by 25 basis points later on Thursday. Investors will closely monitor Lagarde's assessment of the inflation outlook, particularly the potential impact of higher energy prices, Reuters reported.
The ECB decision marks the start of a busy period for global central banks, with the U.S. Federal Reserve and the Bank of Japan scheduled to announce their policy decisions next week.
In individual stocks, Associated British Foods fell 8.6% after the company said like-for-like sales at its Primark retail business were expected to decline 3% in its fourth-quarter period ending September 12.
The weakness in European equities comes as investors weigh the prospect of prolonged monetary policy tightening against the resilience of corporate earnings and economic activity. Higher energy costs remain a key risk to the outlook, particularly if elevated oil prices persist.
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(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times.)
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