European Shares Rally On Fed Relief; BoE Decision Awaited
European stocks advanced on Thursday and bond yields dipped after the U.S. Federal Reserve raised interest rates by 50 basis points, as widely expected, but struck a less hawkish tone than some had feared, saying inflation will “flatten out” over the coming months.
The Bank of England’s monetary policy announcement is due at 7:00 am ET. The central bank is widely expected to raise its key rate by 25 basis points to 1 percent from 0.75 percent.
The pan European Stoxx 600 was up over 1 percent at 445.88 after losing 1.1 percent in the previous session.
The German DAX climbed 1.4 percent, France’s CAC 40 index added 1.5 percent and the U.K.’s FTSE 100 was up 0.8 percent.
Steel giant ArcelorMittal soared almost 3 percent after its Q1 net income jumped over 80 percent.
Wind turbine maker Siemens Gamesa declined 1.5 percent after widening its quarterly loss.
Shell Plc shares rose 3 percent after the energy giant said its net profit jumped 26 percent in the first quarter.
Barratt Developments added 1.4 percent. The housebuilder said it expects to deliver full year results in line with the Board’s expectations.
BAE Systems fell over 2 percent. The defense-and-aerospace company said that its performance in the first quarter was in line with expectations.
Next Plc rose about 1 percent. The clothing, footwear and home products retailer maintained its full-year profit guidance.
Air France KLM gained 2 percent after the Franco-Dutch carrier narrowed its Q1 net loss and said it expects to report break-even operating income in the second quarter.
Lender Crédit Agricole Group fell 3 percent after posting a sharp fall in first-quarter profit.
Peer Societe Generale advanced 1.7 percent after reporting improved first-quarter earnings rose, helped by all its businesses lines.
German biopharmaceutical firm MorphoSys AG surged 5.4 percent despite posting a Q1 loss.
Automaker BMW rallied 2.4 percent after backing its FY22 outlook.
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