European Markets Trade, Stocks, Data in Focus, Global Sentiment Block
LONDON – European stocks closed higher on Thursday as investors react to the Bank of England’s latest move and watch various data releases.
The pan-European Stoxx 600 ended the session up 0.9%, with travel and leisure stocks climbing 1.8% to lead gains, while telecoms resisted the uptrend to retreat 0 , 1%.
In the UK, the FTSE 100 rose after the Bank of England kept monetary policy unchanged but vowed to monitor rising inflation. The index added to earlier gains and was trading around 0.5% at the close. The British pound lost around 0.4% against the dollar.
The Bank of England’s monetary policy committee voted unanimously to keep the policy rate at an all-time low of 0.1%, and a majority voted to keep asset purchases at the current level of 895 billion pounds sterling ($ 1.24 trillion).
It comes amid a turbulent week for markets, which saw global equities slump as investors monitor the inflation outlook and central bank policy.
On Wall Street, major stock indexes traded higher on Thursday, with the S&P 500 breaking its record a week ago.
Despite a pause to catch its breath in the United States on Wednesday, the country’s three major indices are up more than 1% this week, following a massive sell off last week after the Federal Reserve raised inflation expectations and expected rate hikes as early as 2023.
Comments from Fed Chairman Jerome Powell during testimony in Congress on Tuesday reiterated that inflationary pressures should be temporary, which appeared to assuage market sentiment.
Data released Thursday showed US jobless claims stood at 411,000 for the week ended June 19, more than the estimate of 380,000 from economists polled by Dow Jones.
Meanwhile, the results of the Fed’s annual banking stress test are expected to be released on Thursday after the bell. The test examines how banks might fare during various hypothetical economic downturns.
Back in Europe, the German Ifo Institute’s business climate index stood at 101.8 in June, slightly beating the consensus forecast of 100.6 by economists polled by Reuters.
In terms of the development of individual stock prices, Swiss Tecan jumped nearly 11% to the top of the Stoxx 600 after announcing the acquisition of Paramit Corporation for $ 1 billion.
UK food delivery company Deliveroo was also the top performer, rising 9% after a UK court ruled its couriers were self-employed.
At the bottom of the European blue chip index, Switzerland’s Vifor Pharma fell 5% after announcing it would revise a key study after the pandemic affected participant recruitment, with data now expected in the second half of 2022 .
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– CNBC’s Ryan Browne and Hannah Miao contributed reporting for this story.