- The Bank of England on Thursday raised interest rates for the third consecutive meeting and struck a dovish tone as the Russia-Ukraine conflict is expected to keep inflation higher for longer.
- The Bank's Monetary Policy Committee voted 8-1 in favor of a further 0.25 percentage point hike to its main Bank Rate, taking it to 0.75%.
LONDON — European stocks closed higher on Thursday as investors reacted to the U.S. Federal Reserve's first rate hike in years.
The pan-European Stoxx 600 index closed up 0.4%, with oil and gas stocks adding 2.2%. The U.K. FTSE 100 was the standout gainer with a rise of 1.2%.
The Bank of England on Thursday raised interest rates for the third consecutive meeting and struck a dovish tone as the Russia-Ukraine conflict is expected to keep inflation higher for longer.
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The Bank's Monetary Policy Committee voted 8-1 in favor of a further 0.25 percentage point hike to its main Bank Rate, taking it to 0.75%.
Global markets were also digesting the Federal Reserve hiking its benchmark interest rate for the first time since 2018 and signaling six more hikes this year.
Money Report
The war in Ukraine is also dominating headlines. Reports of progress on ceasefire negotiations helped boost stocks on Wednesday and after Ukrainian President Volodymyr Zelenskyy delivered an emotive address to the U.S. Congress, President Joe Biden also approved additional weapons to be sent to Ukraine.
Earnings in Europe came from Audi, Veolia, Ocado and Deliveroo before the bell on Thursday.
In terms of individual share price movement, Deliveroo gained 6.3% after its results and outlook, while Italian biotech firm DiaSorin added 7.75% after better-than-expected full-year earnings.
At the bottom of the index, German conglomerate Thyssenkrupp fell 9.4% after its CEO said in an internal memo seen by Reuters that the war in Ukraine had forced the company to reassess its spending and potential spin-off of its steel division.
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— CNBC's Jesse Pound contributed to this market report.
