Oil stocks lift European shares but rate-hike worries limit gains -Breaking
(Reuters.) European shares rose slightly on Thursday thanks to gains in oil price. But sentiment remained muted as the major central banks indicated that they would continue tightening policy to manage rising inflation.
By 0718 GMT, the pan-European index had increased 0.2%. The energy shares rose 0.8% because of tight supply. [O/R]
Minutes of the U.S. Federal Reserve’s May meeting in early May showed that policymakers believed the economy was strong. Fed policy makers decided to keep hiking rates 50 basis points over the next two month to contain surging inflation caused by the conflict in Ukraine.
This was after the European Central Bank had decided to act in July and investors were worried about an impact on economic growth.
Wall Street closed higher Wednesday but futures indicated some uncertainty for Thursday. Asian shares fell as well. [MKTS/GLOB]
Europe saw a drop in technology stocks, bank and miners between 0.1% – 0.2%.
London’s, which is heavy with mining stocks traded flat.
For a holiday, some European markets, such as the ones in Finland, Sweden, and Switzerland, were shut down.