Key facts
- European shares rose 0.1% on Thursday, recovering from a two-month low.
- Brent crude remained above $100 a barrel after Iran and the United States launched their largest wave of attacks on shipping since the six-month-old conflict began.
- The pan-European STOXX 600 was up 0.1% at 641.23 points as of 0708 GMT.
- The European Central Bank is expected to deliver a 25-basis-point hike later in the day.
- Associated British Foods said Primark's like-for-like sales are expected to be down 3% in its fourth-quarter period ended September 12.
European shares edged higher on Thursday, recovering from a two-month selloff, as investors awaited a widely forecast interest rate hike from the European Central Bank and comments from its chief Christine Lagarde on oil prices and their impact on inflation. The pan-European STOXX 600 index was up 0.1% at 641.23 points as of 0708 GMT, with Germany's DAX flat, London's FTSE edging 0.1% higher and France's CAC 40 gaining 0.3%.
In the previous session, European stocks tumbled 1.4% after Brent crude surged above $100 a barrel for the first time since July, stoking inflation concerns and reinforcing expectations that central banks may need to keep monetary policy restrictive for longer. Brent remained above the $100-a-barrel mark on Thursday after Iran and the United States launched their largest wave of attacks on shipping since the six-month-old conflict began.
The ECB is expected to deliver a 25-basis-point hike later in the day, kicking off a busy period for central banks. The U.S. Federal Reserve and the Bank of Japan are both due to announce policy decisions next week.
Among individual stocks, Associated British Foods said Primark's like-for-like sales are expected to be down 3% in its fourth-quarter period ended September 12. Shares of AB Foods were down 8.6%.